Alere Inc.is a provider of health information through diagnostic tests. The Vascular Products includes the sales of coronary, endovascular, structural heart, vessel closure and other medical device products.
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Alere, founded in 2001, makes “point-of-care” medical tests that can provide results in a matter of minutes. Infant formula and nutritional beverages, which includes the Similac, Ensure and Pedialyte brands, is now Abbott’s biggest business. Last year, there were 1,007 pending or completed deals in the industry, worth a total of $58.9 billion, according to data compiled by Bloomberg. The deal will be immediately add to Abbott’s earnings per share upon close and contribute significantly thereafter, the companies said. The firm’s revenue for the quarter was down 3.1% compared to the same quarter past year. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company.
Abbott Park, Ill.-based Abbott said it agreed to pay $56 per share for Waltham, Mass.-based Alere, marking a roughly 51% premium over the $37.20 January 29 closing price for ALR shares. The company, which spun out AbbVie Inc in 2013, reported lower-than-expected quarterly revenue for the first time in four quarters last week.Canaccord Genuity analyst Mark Massaro said the deal helps Abbott become the undisputed global leader in point-of-care diagnostics and help diversify its business.Abbott, whose 2015 worldwide diagnostics sales were $4.6 billion in 2015, said its total diagnostics sales would exceed $7 billion after the close of the deal. Alere’s net debt of $2.6 billion will also be refinanced by Abbott.
The deal must still be proved by regulators.
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Following the announcement, ALR shares are soaring more than 46 percent in pre-market trading. Community Bank & Trust of Waco, Texas bought a new stake in shares of Abbott Laboratories during the fourth quarter valued at about $1,764,000. AP material published by LongIsland.com, isdone so with explicit permission.
