Eurofins Scientific has agreed to acquire Element Materials Technology’s Life Sciences Testing Services business in North America for an enterprise value of $400 million. The transaction is expected to close during the fourth quarter of 2026, subject to regulatory approvals and other customary conditions.
The acquired business provides biopharmaceutical product testing, environmental testing and food testing services. It operates a network of 27 laboratories and facilities across the United States and Canada.
Element’s North American Life Sciences Testing Services business employs approximately 750 full-time-equivalent workers. The operations are expected to generate more than $150 million in revenue during 2026, with profitability similar to the Eurofins Group average.
Based on the projected revenue, the transaction values the business at less than three times expected 2026 sales. The enterprise value generally reflects the value of the operating business, including debt and excluding available cash, subject to the final transaction terms.
The acquisition will expand Eurofins’ BioPharma and Life businesses across North America. It will also increase the company’s presence in regions of the U.S. and Canada where its laboratory network has historically been underrepresented.
Eurofins expects the acquired laboratories to benefit from its existing customer relationships, analytical capabilities and broader testing portfolio. The company also plans to integrate the operations into its hub-and-spoke laboratory network.
A hub-and-spoke model uses larger centralized laboratories to perform specialized or high-volume testing while regional locations collect samples and provide services closer to customers. This structure can help improve capacity utilization, turnaround times and operating efficiency.
The acquired biopharmaceutical services support companies that need to evaluate the quality, safety and performance of drug products. These services can include testing conducted during development, manufacturing and commercial release.
The environmental testing operations analyze samples to identify contaminants and measure compliance with safety and regulatory requirements. Food testing services can help manufacturers evaluate product composition, authenticity, quality and potential health risks.
Eurofins said the acquisition aligns with its strategy of directing capital toward its core Testing for Life activities. The company has expanded its geographic reach and technology portfolio through a combination of internal investment, research and acquisitions.
Eurofins operates a decentralized network of more than 950 laboratories across 59 countries. Its businesses employ more than 65,000 people and offer over 200,000 analytical methods across food, environmental, pharmaceutical, cosmetic, clinical and other testing categories.
The company believes its digital laboratory infrastructure and established North American network can improve service levels for Element’s existing customers. The transaction is also expected to provide the acquired operations with access to a wider range of specialized testing capabilities.
Completion remains dependent on regulatory clearance and the satisfaction of customary closing requirements. Until the transaction closes, Element’s North American Life Sciences Testing Services business will continue operating separately from Eurofins.
KEY QUOTES:
“We look forward to welcoming Element’s North American Life Sciences Testing Services teams into Eurofins. This acquisition is a natural fit with Eurofins’ existing businesses, and can build on our well invested, efficient and digital laboratories platform to help drive unique levels of service to customers across the continent.”
Dr. Gilles Martin, CEO of Eurofins
