Genetic animal tracing specialist IdentiGen has been acquired by MSD Animal Health, a division of Merck & Co. The deal value was not disclosed, with press speculation centring on consideration over €50m.
MML Growth Capital Partners Ireland and the company’s management have sold their entire 100% shareholding to the US-based pharmaceutical giant. IdentiGen provides DNA-based animal traceability solutions for livestock and aquaculture.
IdentiGen’s technology combines each species’ DNA with data analytics to provide evidenced-based animal traceability to trace beef, seafood, pork and poultry accurately and precisely — verifiable from farm to table, according to the company.
The venture was founded in 1997 by Ciaran Meghen and Ronan Loftus and operates in Europe, the UK and north America. MML invested in IdentiGen in 2015, acquiring a majority stake from investors including Paul Coulson and funding the company’s growth strategy.
The IdentiGen operating company had turnover of €8.4m in 2018 and booked an operating loss of €1.5m, bringing losses since startup to €8.2m. Net worth at year end was negative €4.9m.
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The payroll overhead for 70 staff in 2018 was €4.2m and funding included €13.9m in loan notes from MML which were due for repayment this year.
Loftus commented: “We are now excited to be joining MSD Animal Health, a global leader in our sector. We look forward to working closely with our new colleagues to build on what has been achieved to date.”
Loftus and Meghen will stay on in senior management.
MSD president Rick DeLuca said: “Enhanced digital technology will play an increasingly important role in food traceability and food safety, providing customers critical information and actionable data to help ensure a sustainable supply of quality food to protect public health. We will now be able to provide end-to-end animal traceability solutions to improve the health and safety of animals and ensure even greater transparency in our food supply.
“The highly skilled employees at IdentiGen exemplify our commitment to healthier animals and we look forward to collaborating with the team to leverage our scientific and technical capabilities and expertise to shape the future of animal health.”
MML partner Neil McGowan added: “In so many respects the investment in IdentiGen is a case study of our investment strategy. Five years ago, IdentiGen was a high-quality company, focused on a growth sector, with a strong management team which required investment backing to enable the business realise its potential.
"The team used the investment astutely and has built out the business through pioneering science and technology in food traceability and safety. IdentiGen’s acquisition by MSD Animal Health is a natural step for the business.”
Pegasus Capital and Mason Hayes & Curran provided financial and legal advice to the vendors.
