hVIVO acquires biological material storage specialist Cryostore
By Josh White
Date: Thursday 27 Feb 2025
(Sharecast News) - hVIVO announced the acquisition of Cryostore, a specialist provider of temperature-controlled storage solutions for biological and clinical materials, for up to £3.2m on Thursday.
The AIM-traded firm said the deal, funded with £2.7m in cash and up to £0.5m in equity, was expected to be immediately earnings accretive.
It said Cryostore would operate as part of hVIVO, with its management team remaining in place to ensure a smooth integration.
hVIVO said Cryostore, founded in 1999 and based in Greenwich, London, provides regulatory-compliant storage solutions for pharmaceutical, biotechnology, contract research organisation (CRO), and academic research clients.
It said its facility, which houses 32 freezers across 2,800 square feet, is licensed by the Human Tissue Authority, approved for GMO storage, and capable of storing materials up to Biohazard Category 3.
In 2024 it served 37 clients, with a high retention rate of 97% and an average client tenure of nine years.
The acquisition would expand hVIVO's service offering and provide cross-selling opportunities, particularly in complementing its hLAB and biobank operations.
hVIVO said it already holds more than 500,000 samples and processes over 85,000 samples annually.
Owning Cryostore would allow the company to reduce costs and retain greater margins while supporting its growing laboratory and field study services, the board said.
It added that Cryostore had demonstrated steady revenue growth, reporting unaudited revenue of £0.89m in 2024, up from £0.81m in 2023, with EBITDA of £0.52m.
The company is debt-free and has net assets of £0.84m.
Under the terms of the acquisition, three Cryostore managers would receive up to 2.77 million hVIVO shares over two years, subject to continued service.
"This acquisition represents a strategic step forward in expanding our hLAB and biobank service offering by providing high-quality, temperature-controlled storage solutions for the biopharma industry," said chief executive officer Yamin 'Mo' Khan.
"We have worked with Cryostore for over 20 years and recognise its reputation as a high-quality partner, as evidenced by an impressive list of multi-year tenure biopharma clients.
"With a proven track record of consistent revenue growth, strong client retention, and increasing industry demand, bringing this business in-house will allow us to drive efficiencies, expand our customer base, and support our long-term growth strategy."
At 1448 GMT, shares in hVIVO were down 1.19% at 15.71p.
Reporting by Josh White for Sharecast.com.
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