MINNEAPOLIS (March 13, 12:40 p.m. ET) — Mocon Inc., which makes testing instruments and offers consulting services for packaging, pharmaceuticals and other industries, has purchased competitor PBI-Dansensor A/S, a manufacturer of testing equipment for modified atmosphere packaging.
Mocon purchased the privately held Ringsted, Denmark-based company for $20 million in a deal that is expected to close April 2.
The acquisition will allow Mocon to expand and supplement its product testing line and strengthen its presence in the European and worldwide markets.
Dansensor produces gas mixers, analyzers and leak-detection equipment for businesses that use MAP in the food, beverage and pharmaceutical markets.
“Historically, they've been very strong outside the
Dansensor recorded annual sales of approximately $19.3 million in 2011. The company employs 96 worldwide — 58 at its Ringsted headquarters and the rest at subsidiaries in
Currently, there are no plans to close any Dansensor locations, Lee said.
Mocon, based in
Mocon will pay for two-thirds of the $20 million deal in cash. The rest will be paid over four years pursuant to a seller note. To help finance the deal, the company obtained a secured revolving credit line and term debt totaling $8.5 million from Wells Fargo Bank N.A.