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BioMerieux Finalizes BioFire Diagnostics Acquisition

NEW YORK (GenomeWeb News) — BioMérieux said today that it has finalized its acquisition of in BioFire Diagnostics, giving it 100 percent ownership of the company.

BioMérieux, based in Marcy l'Etoile, France, first announced the agreement to purchase Salt Lake City, Utah-based BioFire in September.

The transaction includes a $450 million cash acquisition price and BioFire's net financial debt — about $35 million — representing a total acquisition price of €357 million ($486 million).

Acquisition costs of €6 million will be recorded under non-recurring items (about €2 million in 2013 and €4 million in 2014).

The acquisition will essentially be funded through BioMérieux's inaugural €300 million issue of seven-year bonds.

In 2014, revenue recognized from BioFire should increase sales by about $80 million, BioMérieux said. The rapid development of BioFire is expected to subsequently act as a key growth driver, the company added, resulting in an increase of 100 to 200 basis points in BioMérieux's organic sales growth over the 2015 to 2017 time period. The acquisition is expected to be dilutive before non-recurring items in 2014 and 2015.

BioFire markets the FilmArray molecular diagnostics system — a fully automated molecular testing system that uses PCR and melt-curve analysis and simultaneously tests for multiple infectious agents in about an hour — as well as associated syndromic infectious disease assay panels.

FilmArray currently has two CE marked and US Food and Drug Administration-cleared panels: the Respiratory Panel and Blood Culture Identification panel.

BioMérieux said that BioFire's Salt Lake City site will become its "hub" for molecular biology expansion, and the companies have begun the integration process, focusing on synergies to drive FilmArray sales and menu expansion.

In order to meet the expectations of BioFire's current biodefense customers in the US, a wholly owned subsidiary dedicated to biodefense activities will be established at a separate site in Salt Lake City, BioMérieux said.