* Executive says purchase this year likely
* Says has picked 5-6 possible targets
* Targets could have up to 40 million eur in sales
* Larger company possible if it fits well
(Adds more quotes, detail)
By Arno Schuetze
HANOVER, Germany, Oct 6 (Reuters) - Genetic-testing specialist Qiagen is set to continue acquiring companies following a capital hike worth about 440 million euros ($650 million), executive board member Ulrich Schriek said.
"It could happen, that there will be another takeover this year," Schriek told Reuters on Tuesday on the sidelines of the trade show Biotechnica in Hannover.
"We have worked at identifying rough diamonds for some time and have now picked five, six companies," he said, adding that talks were already ongoing.
Qiagen would be capable of easily integrating rivals with 50 to 150 staff and sales of 20-40 million euros, Schriek said, adding that he would also consider buying a larger company if it fitted well.
"Acquisition targets have to be earnings accretive within 12 to 18 months and we will not buy out of insolvency," Schriek added.
"Prices for companies have fallen due to the economic crises and many want to huddle under the roof of Qiagen", Schriek said, adding "our telephones have not stood still since our capital hike."
Qiagen recently announced plans to buy British peer DxS Ltd for up to $130 million, including milestone payments, to expand its cancer diagnostics business.
The next move could be a takeover to expand into regions like eastern Europe, India or Africa, Schriek said.
In spite of the acquisitions, however, Qiagen wants to keep up its fast pace of organic expansion, he added.
"In the past we have grown organically at a double-digit percentage range. We want to keep up that trend", CFO Roland Sackers said.
Asked if that could mean Qiagen's sales could add up to 1.3 billion dollars in 2010, Schriek concluded: "That is possible."
Qiagen offers testing kits used to identify the cervical-cancer virus and the swine flu virus. Its products are also used in tumour diagnostics, paternity disputes and drugs development. ($1=.6790 Euro) (Editing by Simon Jessop)