Qiagen N.V., the leading provider of innovative enabling technologies and products for the separation, purification and handling of nucleic acids and proteins, has entered into an agreement to purchase all outstanding shares of Shenzhen PG Biotech Co Ltd (PG Biotech) based in Shenzhen, China.

PG Biotech is a leading developer, manufacturer and supplier of polymerase chain reaction (PCR)-based molecular diagnostic kits in China. The acquisition is expected to expand Qiagen's position as a leading provider of molecular diagnostics solutions to OEM partners and customers in the rapidly growing Asian markets. The transaction is currently pending Chinese government approval and subject to customary closing conditions, stated a release here.

Under the terms of the acquisition agreement, Qiagen will acquire 100% of the outstanding shares of PG Biotech Ltd for approximately US$14.5 million in cash. As 52% of PG Biotech’s shares were held by state-owned institutions, Qiagen’s agreement to acquire PG Biotech was the result of a regulated auction process.

QIAGEN expects to incur one-time charges of approximately US$0.01 - 0.02 in EPS at closing of this transaction which is subject to government approval and expected to occur in the first half of 2006. Based on preliminary analyses and depending on the date of the closing, QIAGEN expects this transaction to contribute approximately US$6 - 7 million in sales over a period of 12 months and to be neutral in EPS in 2006 and accretive in 2007.