Here's my work so far.
($\Leftarrow$)
Since $B \succ 0$ we know $B^{1/2} \succ 0$ (and $B^{-1/2}$ exists). Then
$A=BC=B^{1/2}(B^{1/2}CB^{1/2})B^{-1/2}$
so $BC$ is similar to $B^{1/2}CB^{1/2}$ which implies they have the same eigenvalues. Then
$(B^{1/2}CB^{1/2})^*=(B^{1/2})^*C^*(B^{1/2})^*=B^{1/2}CB^{1/2}$ (Since $B$ and $C$ are both Hermitian)
$\Rightarrow B^{1/2}CB^{1/2}$ is diagonalizable $\Rightarrow BC$ is diagonalizable $\Rightarrow A$ is diagonalizable.
The only issue I'm having is showing that A has all real eigenvalues. I'm not really sure where to start for that.
($\Rightarrow$)
I really don't know where to start with this direction. Since $A$ is diagonalizable I write $A=PDP^{-1}$ where $D$ is a diagonal matrix. My professor gave me a hint to use the fact that since $P$ is non-singular we know that $PP^* \succ 0$, but I don't really know where to take it from there.
You proved that $B^{1/2} C B^{1/2}$ is hermitian. So its eigenvalues are real. $A$ being similar to $B^{1/2} C B^{1/2}$ implies that the eigenvalues of $A$ are real.
$A = P D P^{-1} = P P^{*} ( P^{-*} D P^{-1} )$. So $B = P P^{*}$ and $C = P^{-*} D P^{-1}$.