The 10 laboratories employ more than 300 staff and are expected to generate revenues in excess of €20m in 2016.
Of the laboratories, three are for food testing, five for water testing, and two for pharmaceutical products.
The sale is expected to be completed in the third quarter of 2016 on the satisfaction of certain conditions.
Expand client reach
Eurofins said the laboratories should reinforce existing footprint and expand client reach in the UK and Ireland.
The food laboratories provide safety testing with a competence in microbiology and nutritional analysis, for food manufacturers and retailers, whilst the water testing laboratories serve local authorities and consultants.
Dr Gilles Martin, Eurofins CEO, said the deal was very positive for both parties as it enables each one to focus its resources on core areas of testing.
“These laboratories represent a good strategic fit for Eurofins as they reinforce our food and water testing footprint in the UK and Ireland, and give us a foothold to roll-out our globally-renowned competencies in pharmaceutical products testing in the UK, where we did not yet have a laboratory in this business line.
“By enabling more focused investments and access to a global portfolio of tests and technologies, as well as higher economies of scale, this should also be a very positive development for clients and other stakeholders in the UK and Ireland.”
Reinforce distribution channels
Eurofins said the acquisition reinforces distribution channels for its analytical services.
In return, they will have access to the Eurofins portfolio of services and infrastructure, and the group’s logistical network, allowing them to penetrate respective local markets, and increase share of their clients’ testing spend.
Exova said the sale allows it to dedicate more financial and management resource to growing in sectors where it can build on its market position in technically demanding services such as fire, transportation, aerospace, industrials and infrastructure related testing.
Ian El-Mokadem, CEO of Exova Group, said: “The announcement of the sale of our UK and Ireland Food, Water and Pharmaceutical business enables us to focus our resources where we see the best growth opportunities for the group.”
Earlier this month, Eurofins Scientific acquired EAC Corporation (EAC) from Asahi Industries Co., (Asahi) in Japan.
As part of the deal, Asahi and Eurofins will enter into an exclusive supplier contract for three years.
EAC provides environment testing services nationwide, with a competence in water and dioxin testing. It employs about 70 staff and generates revenues of about €5m.
Dr Martin said EAC is a good strategic fit to the group's existing activities in Japan.
“This acquisition reinforces the group's growing Asia Pacific footprint, and is a further demonstration of our commitment in the region. We look forward to giving EAC access to the full capabilities of the Eurofins network."