Acquisition of BBI Diagnostics Group has been saved
Case studies
Acquisition of BBI Diagnostics Group
Deloitte Advisory Corporate Finance Wales advised the management of BBI on the acquisition of the business by Exponent Private Equity
As a result of the firm’s long-term relationship with BBI, the Deloitte Cardiff M&A advisory corporate finance team advised management on the successful $164m acquisition of the business from Alere Inc by Exponent Private Equity.
Deal background: About BBI
Headquartered in Cardiff, BBI supplies over 1,000 diagnostic products to customers worldwide, in addition to the provision of a range of contract development and manufacturing services.
Founded in 1986, BBI became a listed company on the AIM in 2004, before being acquired by Alere (formerly Inverness Medical Innovations) in 2008.
A trusted partner to some of the world’s leading diagnostic and healthcare organisations for 30 years, BBI now employs c. 440 people across multiple sites internationally.
Client situation
Following the decision to divest BBI, Alere did not appoint sell-side advisors to work on the transaction, opting to use an in-house team. Management however were keen to gain access to independent advice.
Deloitte’s long-term relationship with the management team, and excellent knowledge of the company and its products, meant that the firm was able to provide this independent support, and win the mandate to advise management on the proposed acquisition.
Services provided
Martyn Gregory (South West & Wales Practice Senior Partner), Assistant Director Geraint McGrath, and Manager Rob Wallace led a Cardiff-based Deloitte team in providing financial advisory services to the management team.
Deloitte guided the management team through a challenging process and provided significant support and advice given the absence of any sell-side advisors.
Outcome
The management team and Exponent successfully acquired BBI from Alere for enterprise value of $164m, including up to $47m in contingent consideration.
“Deloitte provided tremendous support to senior management, assisting those in the team who had not been through this process before, and providing calm, measured advice. The Deloitte team’s existing knowledge of the business and management team helped to keep the process on track and they played an instrumental role in helping BBI achieve this milestone agreement. Great news for all current and future BBIers and for Wales.”
Lyn Rees, CEO of BBI
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