WALTHAM, Mass., Dec. 20 /PRNewswire-FirstCall/ -- Inverness Medical Innovations, Inc. a leading manufacturer and marketer of rapid diagnostic products for the consumer and professional markets, today announced that it will acquire all of the capital stock of Redwood Toxicology Laboratory, a privately held drugs of abuse diagnostics and testing company, for $99,000,000 in cash. Redwood, headquartered in Santa Rosa, California primarily distributes rapid drugs of abuse diagnostic products that are used in the workplace, criminal justice and other testing markets as well as operating a toxicology laboratory used for drugs of abuse testing and test confirmations. Redwood's 2007 revenues for the twelve months ended September 30, 2007 were approximately $44 million and it is operating profitably. Redwood was a portfolio company of American Capital Strategies Limited .
Commenting on the agreement, Ron Zwanziger, CEO of Inverness said, "We are very pleased to acquire Redwood, the largest single distributor of Inverness' drugs of abuse testing products. The drugs of abuse testing market has exhibited rapid rates of growth and we believe this area continues to have strong potential. In addition, the availability of a confirmation testing service will further help in the growth of the FirstCheck home drug testing business which we acquired earlier this year"
Commenting on the agreement, Robert Mount, CEO of Redwood said. "Redwood has been a partner of Inverness for quite some time. Our solid relationship and shared vision for the future make this a positive step for both companies."
The transaction provides Inverness, whose Innovacon subsidiary already manufactures virtually all of the products presently sold by Redwood, with stronger distribution in the rapidly growing drugs of abuse testing market. While Inverness plans to integrate certain of its existing drugs of abuse functions with those of Redwood, it also plans to maintain its existing relationships with its other distributors in this area.
About Inverness
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 additional information on Inverness Medical Innovations please visit our website at http://www.invernessmedical.com/.
About Redwood
At Redwood Toxicology Laboratory, Inc., one of the nation's premier forensic drug testing facilities, we offer comprehensive, low-cost drug testing options. We deliver the certainty of science, the dependability of proven processes and the assurance of legally defensible results. Together with our Reditest(R) substance abuse screening devices, RTL offers complete drug screening solutions.
For additional information on Redwood Toxicology Laboratories please visit our website at http://www.redwoodtoxicology.com/.
About American Capital
American Capital is the only alternative asset management company in the S&P 500. With $19 billion in capital resources under management, American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers. American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital and its affiliates invest from $5 million to $800 million per company in North America and euro 5 million to euro 500 million per company in Europe.
This press release may contain forward-looking statements within the meaning of the federal securities laws, including statements regarding potential synergies and benefits of the business combination described above. These statements reflect Inverness' current views with respect to future events and are based on its 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; Inverness' ability to integrate this and other acquisitions and to recognize expected benefits; the ability of Inverness to continue to successfully develop and manufacture diagnostic testing products and to commercialize products; and the risks and uncertainties described in Inverness' annual report on Form 10-K, as amended, for the year ended December 31, 2006, 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.
