Inverness to issue $100 million in senior notes to fund Free & Clear acquisition

September 23, 2009 by MassDevice staff

The Waltham, Mass.-based diagnostics giant plans to offer the notes, due in 2016, to fund its buyout of the Seattle health management firm.

Inverness logo

Inverness Medical Innovations Inc. plans to fund its acquisition of Free & Clear with a $100 million offering of senior notes.

The Waltham, Mass.-based diagnostics maker said it will use the proceeds from the privately placed notes, which are due in 2016, to fund the $100 million in up-front cash it needs to seal the deal with the Seattle-based health management firm. The deal also calls for up to $30 million in additional payments pegged to Free & Clear's 2010 revenues.

Inverness said it will immediately begin knocking on U.S. and international qualified institutional buyers' doors to raise the cash.

Free & Clear, which will operate under Inverness' Alere consumer health management subsidiary, provides evidence-based programs aimed at chronic disease triggers such as tobacco use, poor nutrition, physical inactivity and stress. The company posted sales of more than $47 million last year.