Inverness Medical Innovations has entered into a binding agreement with Kroll, a subsidiary of Marsh and McLennan, to purchase its Substance Abuse Testing division (Kroll Laboratory Specialists), business unit providing forensic quality substance abuse testing products and services across the US.
The company said that the purchase price is $110m cash subject to a customary working capital adjustment. The acquisition is expected to close in the first quarter of 2010 but remains subject to customary closing conditions.
Headquartered in Gretna, LA, Kroll Laboratory Specialists, operates two laboratories certified by the industry’s benchmark, the US Substance Abuse and Mental Health Services Administration (SAMHSA), in Gretna, LA and Richmond, VA and had revenues of approximately $40.2m for the year ended December 31, 2008.
By developing new capabilities in near-patient diagnosis, monitoring and health management, Inverness Medical Innovations enables individuals to take charge of improving their health and quality of life. A global leader in rapid point-of-care diagnostics, Inverness’ products, as well as its new product development efforts, focus on infectious disease, cardiology, oncology, drugs of abuse and women’s health.
Ron Zwanziger, CEO of Inverness said: “We are pleased to acquire Kroll Laboratory Specialists. The drugs of abuse testing market continues to demonstrate strong global growth potential, and we believe that this acquisition will deepen the range of products and services we offer the government, employers, health plans and healthcare professionals through our existing channels.”