Mergers and Acquisitions News

Selvita is about to make acquisitions

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Selvita, which specialises in laboratory research and development services for external customers, wants to increase the scale of its operations in the near future. This will be achieved, among other things, through acquisitions. The first transaction is to be finalised in 2020, Puls Biznesu reports.

Purchase of competence and access to customers

After separating the research part and establishing Ryvu Therapeutics (we have written more about it here), Selvita sets off for shopping. Selvita targets companies from both Poland and Central and Eastern Europe. The company analyses several dozen potential acquisition targets. These are, among others, Selvita’s existing subcontractors, but also completely new companies.

According to Puls Biznesu, the acquisition policy has two main objectives. First, Selvita wants to buy competences that it does not have, and to build them from scratch would be more expensive than acquisitions. For example, the company is looking for smaller companies that have their own animal farms. It is not only costly, but also time-consuming to create an animal farm on your own, due to the certification process. The second goal is to increase the scale of operations and gain access to new customers.

Selvita wants to aggregate smaller players

In its development plans, the company from Krakow is following the example of the biggest European players – Charles River and Evotec. These companies have long since focused on development through acquisitions. On the other hand, there are few companies in Europe such as Selvita. There are either clearly bigger players or small businesses. It is precisely these companies, which are too small to become the target of takeovers for potentates, that want to aggregate Selvita.

Selvita aims primarily at companies that employ 30-150 people and have revenues exceeding PLN 10m. It is attracted by, among others, entities that have competences and employees, but have not obtained enough funding to build a larger scale of operations.

In the long run, the company does not rule out acquisitions in Western Europe. The costs of operations are higher there, but it may be profitable to acquire a strong local brand with access to customers.

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