HYCOR Divests Urinalysis Business to Increase Focus on Allergy and Autoimmune Markets
Garden Grove, CA (February 19, 2013) – HYCOR Biomedical, Inc. (“HYCOR”), a leading manufacturer and marketer of in vitro diagnostic products for the global allergy and autoimmune markets, today announced that it has sold its urinalysis business to an affiliate of One Rock Capital Partners, Laurel Crown Partners, and StoneCreek Capital. The sale includes the KOVA® system of urinalysis products. HYCOR is a portfolio company of Linden Capital Partners (“Linden”).
“The divestiture of the urinalysis business represents an important step in our growth strategy for HYCOR and allows us to focus exclusively on the growing, global allergy and autoimmune sectors of in vitro diagnostics,” said Richard Novak, Chairman of HYCOR’s Board of Directors, and Operating Partner at Linden. The urinalysis business will be named Kova International, Inc. and will continue to operate out of its Garden Grove, California manufacturing facility under the leadership of Vance Mitchell, who has more than 25 years of experience with the Kova urinalysis business.
“With this action we are better positioned to grow our pipeline of allergy and autoimmune diagnostic products to serve the needs of our customers, whether they are leading clinical laboratories or integrated health networks,” said Dick Aderman, President and CEO of HYCOR. “Healthcare providers are increasingly looking to innovations in in vitro diagnostics to provide accurate diagnosis of these prevalent and costly conditions.”
Allergies represent the fifth leading chronic disease in the United States, with an estimated 60 million Americans suffering from one or more allergy types. Moreover, it is estimated that 30-40% of the world population is now affected by one or more allergic conditions. The symptoms of allergy can appear in the nose, ears, lungs, skin, digestive system or other parts of the body. Early diagnosis and treatment of allergy have been shown to modify the course of the disease and help prevent subsequent development of other more serious conditions. An autoimmune disorder is a condition that occurs when the immune system mistakenly attacks and destroys healthy body tissue. There are more than 80 different types of autoimmune disorders and diagnosis is a complex process. Focusing on the allergy and autoimmune markets provides important synergies as the diagnostics for these disease categories share commonalities such as platform, assay development and manufacturing, and also target the same end user and areas of the laboratory.
The transaction includes the transfer of urinalysis assets and employees. Financial terms of the transaction were not disclosed. Houlihan Lokey served as exclusive financial advisor to HYCOR and Kirkland & Ellis LLP provided legal advice to HYCOR for the transaction.