Alere Inc. (NYSE: ALR), a global leader in rapid diagnostics, announced today two transactions that further strengthen the Company's focus on its core business strategy.
On July 2, 2015, Alere signed an agreement to sell its BBI business to Exponent Private Equity LLP, a UK-based private equity firm, for a total purchase price of approximately $164 million, based on foreign exchange rates on that date, including up to $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 globally.
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 U.S. Department of State. Alere expects to use the majority of the proceeds from the sale to pay down existing indebtedness.
Alere has acquired substantially all of the assets of US Diagnostics (USD) for $60 million in cash. USD, based in Huntsville, Alabama, 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, Chief Executive Officer and President of Alere. "We expect the acquisition of USD 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."
Alere expects the two transactions combined to be dilutive to earnings per share by approximately $0.00-$0.05 in 2015.