Benzinga | Jul 23, 2021 10:39AM EDT

Meridian To Buy Urea Breath Test For H. Pylori From Otsuka America Pharmaceutical For $20M

* Meridian Bioscience Inc (NASDAQ:VIVO) has agreed to acquire the North American BreathTek business from Otsuka America Pharmaceutical Inc for $20 million in cash.

* The transaction will close in Meridian's fiscal fourth quarter, which ends in September.

* With this acquisition, Meridian will assume the customer relationships in North America to supply BreathTek, a urea breath test to detect Helicobacter pylori.

* Meridian expects the acquisition to add more than $20 million of annual revenue, enhancing its diagnostics segment. The deal will be accretive to earnings and cash immediately.

* As of 31 March, the company reported cash and cash equivalents were $63.4 million and $110 million of borrowing capacity under its $160.0 million commercial bank credit facility.

* Price Action: VIVO shares are up 0.21% at $18.98 during the market session on the last check Friday.