Mettler-Toledo Acquires PendoTECH; Street Says Hold

Precision instruments and services provider Mettler-Toledo International has acquired PendoTECH, a producer of single-use sensors, transmitters, control systems and software.

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Mettler-Toledo (MTD) President and CEO, Olivier Filliol said, “We are a global leader in real-time measurement of key process control parameters used in bioprocessing, including sensors to monitor pH, dissolved oxygen, carbon dioxide and other parameters. PendoTECH is an excellent strategic fit as it expands our offering to include various sensors, including pressure, which is an important and common control parameter in downstream and upstream bioprocess applications.”

Filliol further added, “The combination of our Process Analytics and PendoTECH products and technologies creates one of the most comprehensive sensor offerings in the bioprocess market today.”

PendoTECH primarily caters to bio-pharmaceutical manufacturers and life science laboratories and generates a bulk of its revenues from the North America region.

Mettler-Toledo has made an initial $185 million upfront payment with additional considerations to the value of $20 million in contingencies and other undisclosed post transaction amounts. (See Mettler-Toledo stock analysis on TipRanks)

Last month, Wells Fargo analyst Dan Leonard reiterated a Hold rating on the stock and raised his price target to $1,300 (17% upside potential) from $1,100.

The other analyst covering the stock, Evercore ISI’s Vijay Kumar, upgraded the stock to a Hold from a Sell and set a price target of $1,150. The two ratings combine to a Hold consensus rating alongside an average analyst price target of $1,225 which implies upside potential of around 10.4%.

Mettler-Toledo scores a 6 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is expected to perform in line with the broader market. Shares have rallied about 72% over the past year.