WALTHAM, Mass., Feb. 3 Inverness Medical Innovations, Inc. (NYSE: IMA), a global leader in enabling individuals to take charge of their health at home through the merger of rapid diagnostics and health management, announced today that it has entered into a binding agreement with Kroll Inc., a subsidiary of Marsh and McLennan Companies, Inc. (NYSE: MMC) to purchase its Substance Abuse Testing division (Kroll Laboratory Specialists, Inc.), its business unit providing forensic quality substance abuse testing products and services across the United States. The purchase price is $110 million 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, Inc., operates two laboratories certified by the industry's benchmark, the U.S. Substance Abuse and Mental Health Services Administration (SAMHSA), in Gretna, LA and Richmond, VA and had revenues of approximately $40.2 million for the year ended December 31, 2008. These locations service workplace, occupational health, third party administrator, criminal justice, government institutions, and other markets throughout the U.S. Kroll Laboratory Specialists, Inc. has over 30 years of experience in the substance abuse testing industry.
Commenting on the agreement, Ron Zwanziger, CEO of Inverness said, "We are very 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."
About Inverness Medical Innovations
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. Inverness is headquartered in Waltham, Massachusetts. For more information on Inverness Medical Innovations visit www.invernessmedical.com .
Cautionary Note Regarding Forward-Looking Statements:
This press release may contain forward-looking statements within the meaning of the United States federal securities laws, including statements regarding potential benefits and other results or effects of the tender offer. These statements reflect Inverness' 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 market and economic conditions; the ability of the parties to satisfy the conditions to the proposed acquisition; Inverness' ability to integrate this and other acquisitions and to recognize expected benefits; the risks and uncertainties described in Inverness' annual report on Form 10-K for the year ended December 31, 2008; and other factors identified from time to time in its periodic filings with the Securities and Exchange Commission. Inverness undertakes no obligation to update any forward-looking statements.
SOURCE Inverness Medical Innovations, Inc.