Private equity firm Matrix says it has realised a return of 3.3 times its investment in diagnostics and diabetes specialist BBI Holdings. The AIM-listed company last month announced its proposed takeover by US point-of-care diagnostics business Inverness Medical Innovations (IMI), providing an exit for Matrix and BBI’s other investors.

Private equity firm Matrix says it has realised a return of 3.3 times its investment in diagnostics and diabetes specialist BBI Holdings. The AIM-listed company last month announced its proposed takeover by US point-of-care diagnostics business Inverness Medical Innovations (IMI), providing an exit for Matrix and BBI’s other investors.

Matrix invested an initial £2.3 million in BBI in 2000, backing the management buy-out led by CEO Julian Barnes along with other institutional investors. It later added further financing and has received proceeds of £7.8 million over the life of its investment, achieving an IRR of 31 per cent.

Jonathan Gregory, director of Matrix, joined BBI’s board when the firm first invested. He comments: ‘Since our original investment, BBI has become cash-generative [and] operationally profitable with a blue-chip customer base, which is unusual in a biotech company.’

BBI’s core businesses are manufacturing rapid diagnostic tests (through its BBInternational subsidiary) and supplying diabetes-care products (through BBI Healthcare).

The company floated on AIM in 2004 with a share price of 47p. After making a number of acquisitions, it now has a market capitalisation of £88 million. IMI has agreed to pay shareholders either 195p in its own stock, or 185p in cash for each share.