Alere sells BBI, buys U.S. Diagnostics

Alere announced 2 major transactions today, selling its BBI diagnostics business and acquiring the assets of U.S. Diagnostics.

The company is selling its BBI business to U.K.-based Exponent Private Equity for approximately $164 million, including up to $47 million in contingent consideration, Alere said. The final price will be subject to a working capital adjustment, the company said.

Alere planned to pursue an initial public offering for BBI Diagnostics last April, but decided against it, saying it wanted to seek greater value for the businesses than could be realized under the economic conditions in the U.K. at the time.

Waltham, Mass.-based Alere said it acquired all of U.S. Diagnostics assets for $60 million. Based in Huntsville, Ala., U.S. Diagnostics 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 U.S. Diagnostics, we continue to execute on our overall strategy, strengthening our core business areas and our balance sheet. 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 CEO Namal Nawana said in a press release.

In May, the husband-and-wife team that founded the company that eventually became Alere Analytics bought the business back and rebranded it as Persivia.

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