VCA To Acquire AVRL From Abaxis For $21 Mln In Cash - Quick Facts

(RTTNews) - Abaxis Inc. (ABAX), a medical products company manufacturing point-of-care blood analysis systems, and VCA Inc. (WOOF) jointly announced that Antech Diagnostics, Inc., VCA's laboratory division, has agreed to acquire the assets of AVRL or Abaxis Veterinary Reference Laboratory from Abaxis for $21 million in cash. The parties anticipate the transaction will close by the end of March.

Abaxis estimates that this activity will result in total pre-tax charges of about $10.0 to $12.0 million which includes cash payments for employee-related costs, including costs for severance, contract termination and other associated costs, and a non-cash charge for the impairment of assets and other assets.

Through the sale of AVRL to Antech Diagnostics, Abaxis will be able to increase its focus on its core product offerings and bolster its co-marketing relationship with Antech Diagnostics.

According to the parties, representatives from Abaxis and Antech Diagnostics will continue to work together, in conjunction with our distribution partners, to market a complete diagnostic solution consisting of Abaxis point-of-care diagnostic products and Antech Diagnostic's reference lab services.