Beckman Coulter Inc., a medical-test company, has announced that it has forged a deal to acquire Biosite Inc. for $1.55 billion. The decision was taken with a view that the combination will strengthen Beckman’s presence in a specialized segment of the diagnostic-test market. Fullerton, Calif. based Beckman Coulter has said it will acquire entire Biosite’s outstanding stock in a cash tender offer of $85-a-share or for approximately $1.55 billion. Beckman further said that it expects to launch the offer within about two weeks, pending regulatory filings.
The companies have stated that their respective boards have already approved the buyout. Beckman’s offer represents a 53 percent premium on the closing price on Friday. The deal is expected to be completed by the second quarter of 2007. Beckman hopes that the proposed transaction is expected to instantly quicken its revenue growth, improve operating margins and be accretive to GAAP earnings in 2008 and beyond.
Scott Garrett, President and Chief Executive Officer of Beckman Coulter commenting on the prospective deal said, ‘This is an exciting transaction that grew out of our successful relationship with Biosite over the past four years in the area of B-type Natriuretic Peptide or “BNP”, a test that aids in the diagnosis, risk stratification and assessment of severity of heart failure and the risk stratification of patients with acute coronary syndromes. It will position Beckman Coulter as a leading provider of immunoassay tests, especially within cardiac diagnostics.’
Biosite produces immunoassay tests to detect such conditions as cancer and congestive heart failure, among other medical conditions. On the other hand, Beckman sells chemical test kits, instruments and automated biomedical test systems used in hospitals and other clinical settings. The companies have been working together for the past four years developing tests that help diagnose and assess certain heart illnesses.
