WEST BRIDGEWATER, Mass., July 10 /PRNewswire/ -- Boston Biomedica, Inc., (Nasdaq: BBII) announced today that it has completed the acquisition of all of the assets, business, and selected liabilities of Source Scientific, Inc. (OTC Bulletin Board: SSFE) for approximately $1.9 million in cash. The acquisition was approved by a resounding majority of all voting shareholders at the Source Scientific Annual Meeting held on Monday, June 30th. Source's business will be operated by BBI-Source Scientific, Inc. (BBI-SS), a wholly- owned subsidiary of Boston Biomedica. Operations will continue in California under current management.
BBI-Source Scientific is a developer and manufacturer of a broad line of clinical instrumentation and biomedical devices for the worldwide in vitro diagnostics industry (IVD). In addition, they are an important provider of contract services for product development, engineering and manufacturing. BBI-SS also operates Service Centers at its headquarters in Garden Grove, CA and in Giessen, Germany. BBI-Source Scientific currently serves many of the same customers as Boston Biomedica.
"BBI-Source Scientific has a well earned reputation for providing quality instruments to our common customer base; they are also IS09001 certified and operate under the FDA's GMP guidelines," said Richard T. Schumacher, President and CEO of Boston Biomedica. "The addition of the BBI-SS product line will enable us to provide an even higher level of service to our existing IVD customers, and will expand this important revenue base."
"We are pleased with the opportunity to become a Boston Biomedica Company," said Richard A. Sullivan, Senior Vice-President of BBI-SS. "With two previous acquisitions they have proven that their management team can combine the capabilities of separate but synergistic operations into one cohesive working unit. BBI-Source Scientific has the instrumentation experience to support BBI's product line growth in infectious disease detection, molecular probe and OEM markets. They have an exciting future as they grow their IVD component and quality control business; we can contribute to that growth through our complementary product lines, our industry experience and our talented staff. They have future needs in software and instrumentation; we have the capabilities to fulfill those needs."
During the just completed fiscal year ended June 30th, Source Scientific's ability to quickly respond to market opportunities was severely hampered due to significant working capital constraints. "Our strong cash position will allow us to positively impact their new product development programs, as well as, their ability to increase sales," said Kevin W. Quinlan, Chief Financial Officer of Boston Biomedica. The two companies will begin to integrate operations immediately through joint selling efforts, software development, and capital improvements. Boston Biomedica has also infused additional cash to fund working capital, product development and other operational needs of BBI-Source Scientific.
Boston Biomedica, Inc. is a worldwide manufacturer and provider of proprietary quality control products for use with IVD test kits for the detection, analysis and monitoring of infectious diseases, including AIDS, Hepatitis and Lyme Disease. These products are used by clinical and research laboratories, blood banks, IVD manufacturers and regulatory agencies to help ensure the accuracy of infectious disease test results. The Company also manufactures IVD test kit components and provides specialty laboratory testing services.
This release may include forward-looking statements that may or may not materialize. Additional information or factors could potentially affect the Company's financial results may be found in the Company's filings with the Securities and Exchange Commission.
Factors which might cause actual results to differ materially from those
projected in the forward-looking statements contained herein include the
following: inability of the Company to develop the end-user market for quality
control products; inability of the Company to integrate the business of Source
Scientific, Inc. into the Company's business; inability of the Company to
obtain an adequate supply of raw materials necessary for certain of its
products; significant reductions in purchases by any of the Company's major
customers; and the potential insufficiency of Company resources, including
human resources, plant and equipment and management systems, to accommodate
any future growth. These and certain other factors which might cause actual
results to differ materially from those projected are more fully set forth
under the caption "Risk Factors" in the Company's Registration Statement on
Form S-1 (SEC File No. 333-10759).
SOURCE Boston Biomedica, Inc.
CONTACT: Richard T. Schumacher, President and CEO, or Kevin W. Quinlan, Chief Financial Officer, 508-580-1900, both of Boston Biomedica, Inc.
