Trinity buys US firm's assets

Trinity Biotech has acquired the assets of distribution company Adaltis US for $3.5 million in cash.

New Jersey-based Adaltis US, which distributes diagnostic instruments and reagents for the infectious disease market in the US, was loss-making in 2003. But Trinity Biotech is buying only its assets, not its liabilities, and expects the acquisition to be earnings neutral for Trinity in 2004 and earnings positive in 2005.

As part of the transaction, Trinity has obtained exclusive distribution rights to Adaltis' open-end microplate analytical instrumentation in the US and non-exclusive distribution rights in the rest of the world, except China.

Trinity chief executive Mr Ronan O'Caoimh described the acquisition of Adaltis US as a strategic move designed to enhance its infectious disease product offering.

"Crucially, the acquisition gives Trinity access to the existing installed base of instruments in the US and provides an opportunity for Trinity to place its own reagents on this installed base of instruments," he said.

Shares in Trinity, which is listed on the Nasdaq, were unchanged at $3.55 by the Irish close yesterday.

In Dublin, they were also steady at €3.20.

Trinity Biotech is active on the acquisition trail at present, looking for purchases in its two key areas of business, infectious diseases and haemostasis, in both Europe and the US.