M&A projects of Life Science companies – what prevents success?
Part 1: Zinsser Analytic, the Road to becoming a medical device provider.
I have 20 years of experience in the life sciences, participating in five M&A projects and developing go-to-market strategies for companies such as Tecan, Biotage, and Euroapi. The most notable series of acquisitions I witnessed was with Calibre Scientific, which acquired a different European company almost every month. As a consultant, I've advised investment firms on the life science market, often providing direct feedback when decisions seemed unwise. These projects revealed the level of preparedness among clients and highlighted that market analysis requires not only data but also a deep understanding of end-user needs and workflows. Ultimately, scientists—our target customers—judge products rigorously; if standards aren’t met on the first try, trust is lost for years.
Aquisitions by Calibre Scientific by Year;
2025 only one (maybe the money is gone)
My career began at Zinsser Analytic, a liquid handling automation provider. In my first week, I learned we had been acquired by Gardner Denver, a company known for manufacturing oil industry pumps, but likely drawn to the faster growth of the medical and life sciences sector. They previously acquired a pump device manufacturer (Thomas, known for large pumps), combining liquid handling to form an OEM medical device manufacturing business. Zinsser, meanwhile, has found success as a provider of customised automated platforms in its niche market. American companies require growth, so after two months, my contract was cancelled, and half the staff were let go. Three months later, they wanted to rehire me after realising they'd cut too many positions and requested a reorganisation. However, the former owner, Mr Zinsser (a very clever guy), sold his stable running business to a very ambitious company, which has no footprint and idea of life science, ah sorry, medical device business; Zinsser Analytic continues to operate by serving a niche market for customised automation solutions. The growth of such niche markets requires careful and realistic assessment. Gardner Denver aimed to acquire separate companies like Zinsser, ILS, Thomas, and Welch to form a new OEM medical device manufacturer, though none had prior experience in the medical device market. Denver had experience in acquisitions and identified process gaps and overhead, aiming to create synergies. They decided to close Zinsser's Frankfurt site, which was effective. However, simply merging companies does not result in a new medical device supplier. As I have not followed recent developments, I cannot comment further, but it seems market share and growth have not met expectations.
Gardner Denver merged with Ingersoll Rand in 2020, shifting its focus to industrial sectors, including large pumps and machinery. In 2021, Flexan, a medical device manufacturer, was acquired by ILC Dover, which is part of Ingersoll Rand. As a result, medical device assembly manufacturing appears to be ongoing.
Lesson to learn: When considering investment in life science markets, focus on understanding the company's products rather than just financial or business cases. Product performance is key to predicting future success. Niche businesses tend to remain niche, so assess opportunities realistically with insights from an experienced market expert.
PS: At Zinsser, a store worker always handled bulk plastic with dirty hands, repacked it, and sold it as "clean" RNA consumables at triple the price—a notable business case.
