Hamilton Thorne completed the acquisition of 100% of the operating assets of Massachusetts-based Embryotech Laboratories for approximately $7.25 million. Middlesex Savings provided a term loan of $5.5 million and $2.5 million revolver to support the buy.

The revolver bears interest at the prime rate (currently 3.5%), matures two years from the closing date and is renewable annually upon bank approval. The term loan bears interest at a rate of 4.25% per annum, includes an escalating amortization schedule and matures five years from the closing date.

This facility replaces Hamilton Thorne’s existing $3.5 million bank line of credit, for net new borrowings of approximately $3.5 million.

Toronto-based Hamilton Thorne is a provider of precision laser devices and advanced image analysis systems for the assisted reproductive technologies (ART) and developmental biology research. Hamilton Thorne estimates this transaction will add more than $5 million of revenue and more than $1.5 million to EBITDA in calendar year 2017.

“Embryotech is the acknowledged U.S. leader in providing quality control services and testing assays to the ART community. In addition to acquiring a great brand, we will be strengthening the financial performance of Hamilton Thorne. Not only will this acquisition increase our scale, we anticipate that it will diversify our revenue base from a predominantly one-time sale of instruments model to a projected 40% recurring revenues from the sales of services and consumables,” said David Wolf, president and CEO of Hamilton Thorne.

“Combining Embryotech with Hamilton Thorne’s portfolio of products and services provides Embryotech with increased financial strength, marketing expertise, and access to the international markets served by Hamilton Thorne. This relationship will bring greater resources to support our current operations and growth plans as well as provide greater opportunities to our employees,” said Eric Dorman, Embryotech’s president. Dorman will continue to lead Embryotech Laboratories as its president.