WALTHAM, Mass., May 18 /PRNewswire-FirstCall/ -- Inverness Medical Innovations, Inc. announced today that it has acquired a newly-constructed manufacturing facility in Hangzhou, China, as part of its acquisition of ACON Laboratories' business of researching, developing, manufacturing, marketing and selling lateral flow immunoassay products in the United States, Canada, Western Europe, Israel, Australia, Japan and New Zealand. Inverness paid ACON approximately $20 million, including 417,446 shares of Inverness common stock to acquire the new facility. The aggregate purchase price for the acquired business, including the manufacturing facility, is expected to be approximately $175 million based upon a multiple of revenue and pre-tax profits of the acquired business. The remaining payments under the agreement with ACON, which are expected to be approximately $80 million, are contingent upon completion of certain milestones related to achievement of functional manufacturing operations in certain territories and regulatory clearance in Spain and Portugal. $20.0 million of the remaining payments will be made through the issuance of our common stock, with the balance payable in cash.
The sale of the new manufacturing facility was triggered when the parties agreed that the facility was fully functional with respect to the first substantial product and the facility is now producing several of the drugs-of-abuse testing products acquired from ACON. The remaining products acquired from ACON are expected to be transitioned to the new facility during the remainder of 2006.
ACON Laboratories retains its existing manufacturing facility, also in Hangzhou, China.
Inverness Medical Innovations is a leading global developer of advanced diagnostic devices and is presently exploring new opportunities for its proprietary electrochemical and other technologies in a variety of professional diagnostic and consumer-oriented applications including immuno-diagnostics with a focus on women's health, cardiology and infectious disease. The Company's new product development efforts, as well as its position as a leading supplier of consumer pregnancy and fertility/ovulation tests and rapid point-of-care diagnostics, are supported by the strength of its intellectual property portfolio. Inverness is headquartered in Waltham, Massachusetts.
For more information about Inverness Medical Innovations, please visit our website at http://www.invernessmedical.com.
This press release may contain forward-looking statements within the meaning of the federal securities laws. 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 the ability of ACON to take all actions and obtain all permits and regulatory approvals necessary to achieve operational functionality at the new facility in a timely manner and the risks and uncertainties described in Inverness' annual report on Form 10-K for the period ended December 31, 2005, 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 contained herein.
Doug Guarino, Director of Corporate Relations
781 647 3900
Inverness Medical Innovations, Inc.