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Bayer buying Chiron unit
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September 17, 1998: 10:53 a.m. ET
German firm's U.S. unit to pay $1.1B for Chiron's diagnostic division
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NEW YORK (CNNfn) - Diagnostic firm Bayer Group agreed Thursday to buy Chiron Corp.'s competing business for $1.1 billion, plus licensing fees and royalties.
Bayer will acquire Chiron Diagnostics Corp., of Walpole, Mass., which operates Chiron's in vitro immunodiagnostic, critical care, nucleic acid diagnostics (NAD), and chemistry businesses.
The acquisition is expected to close by year's end, pending regulatory approval.
"There are three important aspects to this acquisition," said Rolf Classon, president of Bayer's Diagnostics Business Group. "First, it opens up a completely new area in blood gas analysis for Bayer; secondly, it will bring a significant increase in our existing and future clinical laboratory systems business; and thirdly, it gives us technology which will be very important in the future, especially in the NAD field. We are also acquiring a global customer base, know-how and additional research capacity."
Under terms of the deal, Chiron will retain its patent position and certain licensing rights for hepatitis C (HCV) and HIV in probe assays. Chiron will also maintain its ownership position in the blood testing market segment.
Bayer's Diagnostics Business Group, based in Tarrytown, N.Y., is one of the world's largest diagnostics businesses. The group, with sales last year of $1.1 billion, is a member of the worldwide Bayer Group, a $32 billion chemical and pharmaceutical firm based in Germany.
Shares of Chiron (CHIR) opened up 3/16 at 17-1/16 on the Nasdaq Thursday. 
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