Inverness Medical Innovations to acquire Kroll's Substance Abuse Testing division

Feb 4 2010

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."