Alere Strengthens Core Strategy Through Two New Transactions
By LabMedica International staff writers Posted on 09 Aug 2015 |
Alere Inc. (Waltham, MA, USA), a leader in rapid diagnostics, continues to strengthen focus on its core business strategy through an agreement to sell BBI Group and an acquisition of US Diagnostics (Huntsville, AL, USA).
On July 2, 2015, Alere signed an agreement to sell its BBI business to the UK-based firm Exponent Private Equity LLP for a total purchase price equivalent to approximately USD 164 million, including up to USD 47 million in contingent consideration. The final purchase price is subject to a working capital adjustment. BBI Group provides products and services for the diagnostic, healthcare, research, defense, and food industries.
The close of the BBI sale is subject to regulatory approvals, including applicable anti-trust authorization, approvals by CFIUS (Committee on Foreign Investment in the United States) and from the Directorate of Defense Trade Controls of the US Department of State. Alere expects to use the majority of the proceeds from the sale to pay down existing indebtedness.
In the second transaction, Alere has acquired substantially all assets of US Diagnostics (US-D) for USD 60 million in cash. US-D is a leading provider of drug testing devices and is currently a distributor of Alere Toxicology products.
“With the divestiture of BBI and the acquisition of US Diagnostics, we continue to execute on our overall strategy, strengthening our core business areas and our balance sheet,” said Namal Nawana, CEO and president of Alere, “We expect the acquisition of US-D to be immediately accretive, deliver strong returns on the capital invested, and provide access to an expanded customer base with additional opportunities for selling other Alere Toxicology solutions and other business synergies.”
Related Links:
Alere
US Diagnostics
On July 2, 2015, Alere signed an agreement to sell its BBI business to the UK-based firm Exponent Private Equity LLP for a total purchase price equivalent to approximately USD 164 million, including up to USD 47 million in contingent consideration. The final purchase price is subject to a working capital adjustment. BBI Group provides products and services for the diagnostic, healthcare, research, defense, and food industries.
The close of the BBI sale is subject to regulatory approvals, including applicable anti-trust authorization, approvals by CFIUS (Committee on Foreign Investment in the United States) and from the Directorate of Defense Trade Controls of the US Department of State. Alere expects to use the majority of the proceeds from the sale to pay down existing indebtedness.
In the second transaction, Alere has acquired substantially all assets of US Diagnostics (US-D) for USD 60 million in cash. US-D is a leading provider of drug testing devices and is currently a distributor of Alere Toxicology products.
“With the divestiture of BBI and the acquisition of US Diagnostics, we continue to execute on our overall strategy, strengthening our core business areas and our balance sheet,” said Namal Nawana, CEO and president of Alere, “We expect the acquisition of US-D to be immediately accretive, deliver strong returns on the capital invested, and provide access to an expanded customer base with additional opportunities for selling other Alere Toxicology solutions and other business synergies.”
Related Links:
Alere
US Diagnostics
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