As part of their growth strategy in both North and South America, ALS has completed the following acquisitions:
LABFOR Analises Laboratoriais based in Campinhas, Sao Paulo, Brazil (31 July)
Truesdail Laboratories, LLC (TLI) based in California (1 August)
As part of the growth strategy for Latin America, LabFor is now part of the ALS Limited group, recognising in this laboratory the same values and ideals of integrity and quality. This is the first step in the development of the pharmaceutical analysis market in Brazil and Latin America.
LABFOR was founded in 2010 with the purpose of absorbing the needs of the veterinary market, by conducting residues studies of products for registration with the Ministry of Agricultural Affairs of Brazil. In this line, LABFOR is expanding its presence in the human pharmaceutical market, offering the method development for stability studies and analysis such as density and viscosity. LABFOR is recognised as a high-quality service provider and currently employs 35 staff.
Latin America holds three of the biggest 15 pharmaceutical markets in the world, with Brazil being the 6th largest in terms of volume. It is this opportunity that ALS are keen to exploit with the LABFOR acquisition representing the group’s first move into this region.
“We are very excited about this incorporation, which is an important milestone in the history of ALS Life Sciences in Brazil. Having central focus on our customers, we continue to increase the analytical scope offered, with quality and excellence. Another great success of ALS is to add to its technical staff, qualified and highly specialized professionals”, spoke Malcolm Deane – General Manager ALS Life Sciences LATAM.
Interview with Marcelo Zanetti at Zanetti e Paes de Barros Advogados
Please tell me about your involvement in the business?
Zanetti and Paes de Barros Advogados is LabFor’s legal adviser, since its foundation of more than 10 years ago; we are responsible for different legal demands, such as contract analysis, labour and tax matters. Thus, with the advancement of negotiations with the ALS since the beginning of the transaction, our firm was involved in all stages and assisted the partners in their decision-making.
Why is it a good deal for everyone involved?
The operation was successful thanks to the commitment of the companies to enter into an agreement that will bring benefits to all those involved, including LabFor employees who joined a multinational group. We were careful to analyse in depth every step of this process to consolidate the transaction with solidity, ethics and transparency. In addition, the company has the capacity to expand its business that demand high investments to meet the numerous opportunities built over the last few years.
What challenges have arisen? How did you navigate them?
In such cases there is always the challenge of reconciling the parties and constructing contractual conditions and clauses that will balance the interests involved with clarity, especially when there is a large multinational company and a medium-sized company with several partners . There is also the challenge of preserving the conditions so that the business itself thrives and fulfills the objectives of the negotiation. To navigate this requires dialogue, transparency and multidisciplinary technical preparation, such attributes that were also found in the advisers of the other party.
How does this transaction represent the current movement in the Brazilian M&A market?
Despite the economic and political crisis that Brazil is experiencing, this operation signals that the country still draws attention to investments in view of the quality of its entrepreneurs and the representativeness of its domestic market. The country needs a period of stability to resume high growth rates.
Can you share three things you should do before working on a business like this?
The suitability and good faith of the parties involved, clear, fair and transparent business purposes, and the legal feasibility of the intended business.
How do you ensure soundness, ethics and transparency are met for such transactions?
In order to guarantee solidity, ethics and transparency in transactions such as the ones in which we usually act, it is necessary to map, in a clear and concise manner, all the businesses of the companies to be integrated and carry out profound administrative, legal, financial operations and to determine the true value of the company to be acquired / purchased. It is important to note that operational and cultural aspects are also considered, especially when it comes to companies with different nationalities.
These definitions are important to outline strategic planning that will lead to the realisation of the business.