Inverness Medical Innovations has announced that it has entered into a binding agreement with Kroll Inc, a subsidiary of Marsh and McLennan Companies Inc 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 US 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 US Kroll Laboratory Specialists 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."
Source: Inverness Medical Innovations
