Life sciences investor Novo Holdings has agreed to acquire diagnostic products provider BBI Group from Exponent for an enterprise value of more than £400m.

Novo will become the majority stakeholder of BBI Group, upon completion of the transaction.

Established in 1986, BBI is involved in the supply of products and services to the global diagnostics and life sciences industries.

BBI Group CEO Mario Gualano said: “We are delighted to be working with Novo Holdings, a team with a strong track record and a shared vision for growth and innovation.

“In the last five years, we have grown revenues and profitability considerably through investing in our products and services, people, and world-class infrastructure.”

BBI offers critical reagents and immunoassay development, lateral flow development and diagnostic manufacturing services, as well as smartphone reader technologies to global blue-chip customers such as Thermo-Fisher, Merck and Siemens.

Its BBI Solutions brand offers a range of products, consisting of antibodies, antigens, labels, complementary reagents and point of care tests.

Based in South Wales, BBI Group employs more than 400 employees at its sites in seven countries and four continents.

Novo Holdings senior partner Johan Hueffer said: “We see tremendous opportunities for both organic and inorganic growth for the company.

“Novo Holdings is looking forward to contributing its considerable industry expertise and extensive network in supporting the talented team at BBI.”

The closing of the deal is subject to customary regulatory approvals. Lazard acted as financial advisor to Novo Holdings, while Kromann Reumert, Latham & Watkins and Linklaters served as legal advisors.

The investment in BBI is part of Novo’s Principal Investments strategy that targets investments in well-established life science companies.

In May, Novo participated in the $540m Series F round in Noom, a New York City-headquartered digital health platform focused on behavior change.