Life science research company Sartorius on Thursday announced an agreement to acquire a majority stake in Israeli company Biological Industries.

Under the terms of the agreement, Sartorius will acquire just over 50% of the shares of Biological Industries from its owners, Kibbutz Beit Haemek and private equity fund Fortissimo Capital, for approximately EUR45m in cash.

In conjunction, Sartorius has received the option to acquire a further 20% of the shares in Biological Industries within three years.

The transaction is subject to customary closing conditions and is expected to be finalised by mid-December.

Biological Industries focuses on cell culture media used in research, clinical development and production of biopharmaceuticals and cell and tissue therapy applications. It employs 130 people mainly at its headquarters, R&D and manufacturing site close to Haifa, Israel, and at sales locations in the USA, Europe and China. The company expects to achieve sales of EUR25m with a double-digit operating EBITDA margin in the current year.