Landec acquires Lifecore Biomedical

Landec has acquired Lifecore Biomedical, a supplier of hyaluronan-based biomaterials for the medical and veterinary markets, from Warburg Pincus Private Equity. Uses for the company's hyaluronan biopolymers include cataract surgery, degenerative joint disease, spinal defect filling, medical device coatings and cosmetic soft tissue enhancement.

Landec acquired Lifecore's stock for $40 million in cash, and it assumed about $4 million in debt. The company will record about $2.9 million in acquisition-related expenses during fiscal 2010's fourth quarter. Lifecore's revenue for fiscal 2011 is projected at about $26 million to $28 million.

The agreement also includes a future cash earn-out potential for Warburg Pincus of up to $10 million based on Lifecore achieving certain financial targets during calendar years 2011 and 2012.

"The acquisition of Lifecore significantly advances our stated strategy to acquire a company that expands our capabilities in materials science, specifically in the area of biomaterials," says Gary Steele, chairman and CEO of Landec.

- here's Landec's press release