May 30, 2007 09:08 AM | Press Release
Boston, MA — May 30, 2007 — Covington Associates LLC announced today that it acted as the financial advisor to Inverness Medical Innovations, Inc. (AMEX: IMA) in its Joint Venture (“JV”) with Procter & Gamble (NYSE: PG), an international consumer products company. The combined venture is designed to develop, manufacture and market consumer diagnostic products outside the fields of cardiology and diabetes. Inverness Medical and P&G each contributed $325 million in cash to form the venture, a new company entitled SPD Swiss Precision Diagnostics GmbH, which will be headquartered in Geneva, Switzerland.
Inverness’ primary role in the collaboration will be to develop and manufacture consumer diagnostic products while P&G’s primary role will be to market, sell, and distribute existing and to-be-developed products. Inverness will retain all rights with respect to the development and sale of cardiology diagnostic products and its professional Point of Care diagnostic businesses. Inverness Medical Innovations, based in Waltham, Massachusetts, is a manufacturer and seller of consumer and professional diagnostic products focused on women’s health, cardiology and infectious disease.
“Inverness is proud to be contributing its consumer diagnostics business to the joint venture with P&G. We believe that this is a best-of-breed combination that has the potential for terrific growth,” said Ron Zwanziger, CEO of Inverness.
Chris Covington, a Managing Director at Covington Associates, was quoted as saying “This joint venture represents a fantastic opportunity for both Inverness Medical and Procter and Gamble. The world class combination of Inverness’ quality consumer diagnostic products and P&G’s global distribution network will have positive results for both companies.”
About Inverness Medical Innovations
nverness Medical Innovations is a leading global developer of advanced diagnostic devices and is presently exploring new opportunities for its proprietary electrochemical and other technologies in a variety of professional diagnostic and consumer-oriented applications including immuno-diagnostics with a focus on women’s health, cardiology and infectious disease. The Company’s new product development efforts, as well as its position as a leading supplier of consumer pregnancy and fertility/ovulation tests and rapid point-of-care diagnostics, are supported by the strength of its intellectual property portfolio. For additional information on Inverness Medical Inc., please visit Inverness’ website at www.invernessmedical.com.
About Covington Associates LLC
Covington Associates is a specialty investment banking firm founded in 1991 serving business service, consumer, industrial, healthcare and technology companies throughout the country. Focused on mergers and acquisitions, debt and equity capital raising, debt and equity restructuring, and strategic advisory assignments for middle market companies, Covington Associates has completed transactions ranging in value from $10 million to over $1 billion for both private and publicly traded companies. To learn more about Covington Associates, visit www.covingtonassociates.com.
IMI JOINT VENTURE WITH PROCTER & GAMBLE