Friday, May 19, 2006

Inverness buys plant in China for $20M

Inverness Medical Innovations Inc. has purchased a manufacturing plant in China, and has bought 49 percent of a life-sciences testing firm in Virginia.

Officials of the Waltham company say they have acquired a new manufacturing facility in Hangzhou, China, as part of its acquisition of Acon Laboratories' business of researching, developing, manufacturing, marketing, and selling testing products worldwide.

Inverness paid Acon, which is based in San Diego, approximately $20 million in company stock, officials said.

The purchase price of the plant is part of a larger deal for Inverness to acquire the entire Acon business, including the manufacturing facility, for $175 million.

Inverness also announced that it would acquire 49 percent of the capital stock of TechLab Inc., a privately held diagnostics company, in exchange for 303,417 shares of Inverness common stock.

Inverness shares are selling at about $28 per share, making the purchase worth about $8.8 million.

TechLab, based in Blacksburg, Va., produces rapid noninvasive intestinal diagnostics tests in the areas of intestinal inflammation, antibiotic associated diarrhea and parasitology.

Inverness Medical develops advanced diagnostic devices and is exploring new opportunities in women's health, cardiology and infectious disease. The company is a supplier of consumer pregnancy and fertility/ovulation tests and rapid point-of-care diagnostics.