San Juan Capistrano-based Nichols Institute said it has acquired KRJ Ltd., a Sioux Falls, S.D., operator of clinical laboratories, for $6.9 million in cash and notes.
The purchase of KRJ, which operates two laboratories serving parts of South Dakota, Minnesota, Iowa and Nebraska, is expected to boost Nichols' sales by $11 million next year, said William A. Mahan, Nichols' chief financial officer.
Mahan said the acquisition will also improve Nichols' ability to attract complicated lab work, which will go to the company's reference laboratory in San Juan Capistrano. Until now, Nichols relied on local sales offices to receive orders for advanced testing.
In addition to the reference laboratory, which has clients in 50 states, Nichols operates general clinical laboratories in San Diego, San Pedro and Portland, Ore.