US-based Alere has signed an agreement with UK-based private equity firm Exponent Private Equity to divest its BBI business, for around $164m.
BBI Group offers products and services to the diagnostic, healthcare, research, defense and food industries across the globe.
Alere plans to use most of the proceeds from the sale to clear its existing indebtedness.
The sale of BBI is subject to regulatory approvals, including applicable anti-trust authorization, approvals by Committee on Foreign Investment in the US (CFIUS) and from the Directorate of Defense Trade Controls of the US Department of State.
In other deal, Alere has purchased all of the assets of US Diagnostics (USD) for $60m in cash.
Based in Huntsville of Alabama, USD provides drug testing devices and is also a distributor of Alere toxicology products.
Alere president and CEO Namal Nawana said: "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.
"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 is involved in providing rapid diagnostics for infectious disease, cardiometabolic disease and toxicology.
Image: Alere to divest BBI business and purchase US Diagnostics. Photo: courtesy of bajita111122/ FreeDigitalPhotos.net.