Source Scientific Inc. appears to be settling into abeneficial relationship after years of being stuck incorporate arrangements that that didn't work out.
The Garden Grove, Calif., company and BiopoolInternational Inc., of Ventura, Calif., signed an agreementwhereby Biopool would issue 3 million shares of stock toacquire Source Scientific. The stock (NASDAQ:BIPL)was worth about $6 million when the deal wasannounced. Source Scientific, which focuses onlaboratory instrumentation, would be a subsidiary ofBiopool and own about 27 percent of the new company.
Source Scientific, founded in 1975, was previouslyowned by Microprobe Corp., of Bothell, Wash., and theAlton Group, of Irvine, Calif., before becomingindependent again.
The company's president and CEO, Richard Sullivan, isnow ready to implement a five-year plan he formulatedmore than six years ago. Sullivan said Source Scientifichas eliminated $3 million in debt in the past year and ahalf, and is just starting to become profitable.
Biopool, a reagent manufacturer, benefits by adding aninstrumentation platform compatible with many of itstests. Together the companies are anticipating revenues of$12 million to $14 million in 1996, said Michael Bick,chairman and CEO of Biopool.
Bick said he sees three areas of opportunity with theacquisition. One is that Source Scientific is near break-even and is poised, as Biopool's first acquisition, to helpwith its revenues and earnings.
Another benefit is the combination of the company'sproducts, some already compatible, gives Biopool moreto offer its distributors. And, with Source Scientific'stechnology, Biopool can develop assays that previously itcouldn't because of the lack of instrumentation. n
-- Jim Shrine
(c) 1997 American Health Consultants. All rights reserved.