Mesa Labs Announces Agreement to Acquire GKE-GmbH companies
October 16, 2023
Gary Owens, President and CEO
John Sakys, CFO
John Sullivan, Chairman and Investor Relations
Safe Harbor Statement
This presentation release contains forward-looking statements within the meaning of the federal securities laws. Investors are cautioned that statements in this press release which are not strictly historical statements including, without limitation, express or implied statements or guidance regarding the expected effect of the acquisition of GKE-GmbH, SAL GmbH and Beijing GKE Science & Technology
CO. LTD (collectively "GKE") on Mesa's future financial performance, including revenues and income growth, the accretive nature and the
timing of the accretive nature of the acquisition, expected synergies following the acquisition of GKE, customer adoption of GKE's products, the expected expansion of Mesa's product lines, the timing of the closing of the GKE China acquisition and other statements
identified by words like "believe," "expect," "may," "will," "should," "seek," or "could" and similar expressions, constitute forward-looking
statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with: the risk that the proposed acquisition may not be completed in a timely manner, or at all; the occurrence of any event, change or other circumstance that could give rise to the termination of the acquisition; our ability to integrate GKE's business and personnel and to achieve expected synergies; our ability to maintain or expand GKE's historical sales; our ability to accurately forecast the acquisition, related restructuring costs and allocation of the purchase price, goodwill and other acquired intangibles and other asset adjustments; the risk of any litigation relating to the transaction; and other risks detailed in Mesa's most recent Annual Report on Form 10-K on file with the Securities and Exchange Commission and the other reports that Mesa periodically files with the Securities and Exchange Commission. Actual results may differ materially from those contemplated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. These forward-looking statements reflect management's current views and are based only on information currently available to us. Mesa does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances, whether as a result of new information or otherwise, that occur after the date hereof except as required by law.
In this presentation, we refer to non-GAAP financial measure adjusted operating income ("AOI") which is defined to exclude the non-cash impact of amortization of intangible
assets, stock-based compensation expense, and impairment loss on goodwill and long-lived assets. We are unable to provide a reconciliation of forward-looking AOI because components of the calculation are inherently unpredictable and currently unknown.
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Strategic Rationale
Complementary Products
Complementary Customer Access
The Mesa Way
Strength in chemical indicators complementing Mesa's strength in biologic indicators which are used in the same sterility validation workflows
Deep healthcare focused commercial capability and geographic coverage complement Mesa's life science expertise
Opportunity to leverage The Mesa Way to accelerate sustainable growth in a highly attractive business
Accretive to Mesa on multiple levels
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GKE Businesses Snapshot
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
North America 4% | OEM | Mesa: | Life Science 7% | |||
~70% | ||||||
OEM & Ancillary | ||||||
RoW | 12% | |||||
18% | ||||||
14% | Direct | |||||
Testing 2% | ||||||
APAC (ex China) | 17% | |||||
Cleaning 7% | ||||||
15% | ||||||
Mesa: | Biological Indicators | |||||
~80% | 12% | |||||
China | ||||||
22% | Healthcare | |||||
Distribution | 93% | |||||
71% | Chemical Indicators | |||||
Europe | 61% | |||||
44% | ||||||
Geography | Channel | Product | Vertical |
Revenues* €19- €20M
MSD Long Term
Core Revenues
Growth*
GP%^ low 70s
AOI%*^ 37% - 40%
Note: *Represents Mesa's first full year of ownership and excludes COVID related revenues ^Exclusive of the impact of purchase accounting and integration expenses
Global presence, local intimacy, with complimentary product and vertical strengths
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GKE Healthcare Applications
Chemical Indicators
Medical instrument sterility assurance
Medical Procedure
Sterile Storage | Initial Wash |
Chemical Indicators
Proof of sterilization and data tracking
Broad indicator portfolio
focused on healthcare sterilization workflows
Cleaning Indicators
Routine monitoring of validated instrument
wash cycles
Sterilization Cycle | Sterilization Prep |
Biological & Chemical Indicators | Chemical Indicators |
Validate sterility | Indicators added to each instrument package |
Differentiated, proven, flexible platform of sterilization indicators for healthcare
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Disclaimer
Mesa Laboratories Inc. published this content on 16 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 October 2023 16:38:25 UTC.