LabCorp Enters into Definitive Agreement to Acquire Assets of Pathology, Inc.
BURLINGTON, N.C.–(BUSINESS WIRE)–Laboratory Corporation of America® Holdings (LabCorp®)
(NYSE: LH) today announced that it has entered into a definitive
agreement to acquire substantially all of the operating assets of
Pathology, Inc., including patient service centers, used to conduct
Pathology, Inc.’s medical testing and services business. Pathology, Inc.
is a leading full-service independent women’s health laboratory,
providing expertise in reproductive FDA donor testing as well as
anatomic, molecular and digital pathology services.
“Pathology, Inc. is a premier laboratory known for quality, science and
innovation in women’s health testing,” said David P. King, chairman and
chief executive officer of LabCorp. “It is an excellent fit with
LabCorp’s existing women’s health service offerings and supports our
mission to provide world class diagnostic solutions that improve health
and improve lives. In addition to Pathology, Inc.’s strategic fit, the
transaction meets LabCorp’s financial criteria of being accretive to
earnings in year one and earning our cost of capital by year three.”
The transaction is subject to customary closing conditions, including
the expiration or early termination of the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The
transaction is expected to close in the first quarter of 2016. Terms of
the agreement were not disclosed. Upon the closing of the transaction,
Pathology, Inc. will cease operations.
About LabCorp®
Laboratory Corporation of America® Holdings, an S&P 500
company, is the world’s leading healthcare diagnostics company,
providing comprehensive clinical laboratory services through LabCorp
Diagnostics, and end-to-end drug development support through Covance
Drug Development. LabCorp is a pioneer in commercializing new diagnostic
technologies and is improving people’s health by delivering the
combination of world-class diagnostics, drug development and knowledge
services. With combined revenue pro forma for the acquisition of Covance
in excess of $8.5 billion in 2014 and more than 48,000 employees in over
60 countries, LabCorp offers innovative solutions to healthcare
stakeholders. LabCorp clients include physicians, patients and
consumers, biopharmaceutical companies, government agencies, managed
care organizations, hospitals, and clinical labs. To learn more about
Covance Drug Development, visit www.covance.com.
To learn more about LabCorp and LabCorp Diagnostics, visit www.labcorp.com.
This press release contains forward-looking statements including with
respect to estimated 2015 guidance and the impact of various factors on
operating results. Each of the forward-looking statements is subject to
change based on various important factors, including without limitation,
competitive actions in the marketplace, adverse actions of governmental
and other third-party payers and the results from the Company’s
acquisition of Covance. Actual results could differ materially
from those suggested by these forward-looking statements. Further
information on potential factors that could affect LabCorp’s operating
and financial results is included in the Company’s Form 10-K for the
year ended December 31, 2014, and the Company’s Form 10-Q for the
quarter ended September 30, 2015, including in each case under the
heading risk factors, and in the Company’s other filings with the SEC,
as well as in the risk factors included in Covance’s filings with the
SEC. The information in this press release should be read in
conjunction with a review of the Company’s filings with the SEC
including the information in the Company’s Form 10-K for the year ended
December 31, 2014, and subsequent Forms 10-Q, under the heading
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
Contacts
Laboratory Corporation of America® Holdings
Paul Surdez,
336-436-5076
Investor@labcorp.com
