QIAGEN Agrees to Acquire China-Based Tianwei
Leading Supplier of Preanalytical Technologies in Chinese Market
Venlo, The Netherlands - June 13, 2005 - QIAGEN N.V. (NASDAQ: QGEN; Frankfurt, Prime Standard: QIA), the world's leading provider of innovative enabling technologies and products for the separation, purification and handling of nucleic acids and proteins today announced that it has completed the acquisition of Beijing-based Tianwei Times ("Tianwei"). Tianwei, a privately held company, is a leading developer, manufacturer and supplier of nucleic acid sample preparation consumables in China . The acquisition expands QIAGEN's position as the leading supplier for products and technologies for preanalytical sample preparation in the rapidly growing market in China. The transaction is currently pending Chinese government approval.
Under the terms of the acquisition agreement, QIAGEN has acquired certain assets of Tianwei for approximately US$2.0 million in cash plus potential earn-outs over two years that are estimated at approximately US$2.0 million. QIAGEN expects to incur one-time charges relating to the acquisition of less than US$0.5 million in the third quarter 2005. Based on preliminary analysis, QIAGEN expects this transaction to contribute approximately $1.5-2.0 million in sales of preanalytical and related products and approximately $0.3 million in net income in 2006. Tianwei currently employs approximately 50 employees, of which a substantial number are employed in research and development.
"Over the course of 2004, QIAGEN significantly expanded its position in China ," said Peer M. Schatz, QIAGEN's Chief Executive Officer. We established a focused, local marketing presence including an office in Shanghai and strengthened our distribution channels with Gene Company as the major distributor. Tianwei will complement these activities with its research, manufacturing and marketing organization and will allow us to tailor preanalytical solutions for nucleic acids and proteins to meet the specific needs of the local scientific community. With its clear focus on scientific excellence and its strong reputation, Tianwei proved to be a perfect match to QIAGEN's strategic goals and will now serve as a base for the expansion of our presence and our research and manufacturing activities in this rapidly growing market."
"Tianwei was sought due to its track record as a leading supplier for nucleic acid sample preparation products in the life science industry," said Dr. Ulrich Schriek, QIAGEN's Vice President Corporate Business Development. "Tianwei's leading position in China is based on a strong network of relationships in the scientific community as well as on their focused, already well established and rapidly growing presence in the market.
" We are very pleased and excited to join forces with the world's leading provider of enabling technologies for preanalytical sample preparation to leverage this opportunity to further increase customer services and products customized for our users' unique needs," said Dr. Chunxiang Wang , Tianwei's founder, "QIAGEN's global presence, its recognized excellence and its operational strength make QIAGEN a perfect partner to serve the expanding Chinese research markets."
QIAGEN N.V., a Netherlands holding company with subsidiaries in Germany, the United States, Japan, the United Kingdom, Switzerland, France, Italy, Australia, Norway, Austria, Canada, Sweden, and the Netherlands believes it is the world's leading provider of innovative enabling technologies and products for the separation, purification and handling of nucleic acids and proteins. QIAGEN has developed a comprehensive portfolio of more than 320 proprietary, consumable products for nucleic acid and protein separation, purification and handling, nucleic acid amplification, as well as automated instrumentation, synthetic nucleic acid products and related services. QIAGEN's products are sold in more than 42 countries throughout the world to academic research markets and to leading pharmaceutical and biotechnology companies. In addition, QIAGEN is positioning its products for sale into developing commercial markets, including applied testing markets, clinical research, nucleic acid-based molecular diagnostics, and genetic vaccination and gene therapy. QIAGEN employs more than 1,300 people worldwide. Further information on QIAGEN can be found at http://www.qiagen.com/.
About Tianwei Times:
Beijing-based Tianwei Times currently employs approximately 50 employees. The company is focused on providing solutions for the purification of DNA and RNA. Tianwei has a commitment to scientific excellence and maintains a strong network of relationships in the Chinese scientific community. Further information on Tianwei can be found at http://www.tw-biotech.com/.
Certain of the statements contained in this news release may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products, markets, strategy or operating results are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations and risks of dependency on logistics), variability of operating results, the commercial development of the applied testing markets and proteomics markets, nucleic acid-based molecular diagnostics market, and genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's, products ( including fluctuations for certain events including funding, budgets, and others ), difficulties in successfully adapting QIAGEN's products to integrated solutions and producing such products, the ability of QIAGEN to identify and develop new products and to differentiate its products from competitors, market acceptance of QIAGEN's new products and the integration of acquisitions of technologies and businesses. For further information, refer to the discussion in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC).
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