WALTHAM, Mass., July 16, 2015 /PRNewswire/ -- 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.
Cautionary Note Regarding Forward-Looking Statements
This press release contains information about future expectations, plans and prospects of Alere's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements regarding: the transactions will allow the Company to focus on its core business strategy; the ability of the Company to complete the divestiture of BBI; the intended use of proceeds from the sale of BBI; the expected benefits of the acquisition of US Diagnostics (including that the acquisition will be immediately accretive and deliver strong returns on the capital invested); and that the two transactions combined are expected to be dilutive to earnings per share by approximately $0.00-$0.05 in 2015. These statements reflect the Company's current views with respect to future events and are based on management's current assumptions and information currently available. Actual results may differ materially due to numerous factors including, without limitation, risks associated with integrating new acquisitions into the Company's operations, satisfying conditions necessary to close the sale of BBI, meeting requirements in order to receive contingent consideration payments, market and economic conditions and unanticipated expenses, and other risks identified in the Company's Annual Report on Form 10-K/A for the fiscal year ended December 31, 2014, among others. The Company undertakes no obligation to update any forward-looking statements contained herein.
Alere believes that when diagnosing and monitoring health conditions, Knowing now matters™. Alere delivers on this vision by delivering reliable and actionable information through rapid diagnostic tests, enhancing clinical and economic health outcomes globally. Headquartered in Waltham, Mass., Alere focuses on rapid diagnostics for infectious disease, cardiometabolic disease and toxicology. For more information on Alere, please visit www.alere.com.
SOURCE Alere Inc.