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Will Eurofins’ Acquisition of SF Analytical Boost Returns?

Analytical testing is currently an attractive area for investors around the globe upon which to focus their attentions. The fact remains, however, that a great deal of this investment capital needs to be utilized so that higher returns for investors will result. A major way in which testing firms are striving to put this $1.3 trillion in capital to good use is by consolidating their efforts. The Eurofins firm is on the forefront of this trend, as demonstrated by its recent acquisition of SF Analytical Laboratories.

Specializing in the testing of environmental elements, pharmaceutical products and food products, Eurofins Scientific operates in 36 nations and employs 16,000 individuals. Across more than 200 laboratories, Eurofins demonstrates superior technical and analytical methods when testing the composition, legitimacy and safety of their clients’ product samples. The lab maintains a streamlined process for acquiring samples via high-tech courier systems as well as upholds a solid reputation in working with clients on a regional and multinational basis. These strengths are viewed as a great benefit by Dave Kilber, SF Analytical’s CEO, who states that the opportunity to consolidate his company’s testing services with those of Eurofins’ enables client expansion and more diverse offerings.

Based in Wisconsin, SF Analytical brings a number of impressive credentials to its consolidation deal with Eurofins. The majority of SF Analytical’s laboratory testing is concentrated on food and drink products, dietary supplements and ingredients used by food manufacturers and processors. Because Wisconsin ranks third in the U.S. in regard to food production and first in the U.S. in regard to food ingredient production, SF Analytical has a strong regional client base for which to test the nutritional, microbiological and allergen profiles of samples. This firm also has the benefit of Wisconsin being a major water research area, as its lab offers water and environmental testing services. Boasting 2,900 clients, SF Analytical has an ISO 17025 accreditation, ensuring competent quality and validity standards in the testing of dietary supplements.

Eurofins’ acquisition of SF Analytical is to be completed by the close of November 2014. The Wisconsin location will retain all employees and will be renamed as Eurofins SF Analytical. This consolidation allows Eurofins to expand its presence in the Midwestern United States, and all of the current testing operations performed by SF Analytical will continue as usual.

This particular consolidation of analytical testing labs, as well as other potential consolidations within this sector, is intended to raise the overall profits of investors in technology and science. Current and future investors can be encouraged by the fact that analytical laboratory testing services will increase as the requirements for food and environmental safety become more stringent. Firms such as Eurofins and the newly formed Eurofins SF Analytical have an interest in proactively expanding their testing so as to ensure that their capabilities are in line with continually evolving regulations.

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