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Transaction to enhance Labcorp's laboratory services network
and expand access to the company's high-quality clinical laboratory services
BURLINGTON, N.C. and MIAMI, March 28, 2024 /PRNewswire/ -- Labcorp (NYSE:LH), a global leader of innovative and comprehensive laboratory services, and OPKO Health, Inc. (NASDAQ:OPK), a multinational biopharmaceutical and diagnostics company, announced today that they have entered into an agreement for Labcorp to acquire select assets of BioReference Health, a wholly owned subsidiary of OPKO Health.
Through this transaction, Labcorp will acquire BioReference Health's laboratory testing businesses focused on clinical diagnostics and reproductive and women's health across the United States outside of New York and New Jersey. This transaction includes patient service centers (PSCs) and certain customer contracts and operating assets. BioReference Health will continue to offer oncology and urology diagnostic services nationwide, as well as maintain its full operations in New York and New Jersey.
When complete, the transaction is expected to provide patients, physicians and customers with greater access to Labcorp's comprehensive, high-quality laboratory services, scientific expertise and expanded testing capabilities in key regions across the country.
"Labcorp is committed to building on the excellent customer service that physicians and health systems have come to expect from BioReference Health, while expanding access and convenience for patients across the country," said Mark Schroeder, Executive Vice President and President of Diagnostics Laboratories and Chief Operations Officer of Labcorp. "We look forward to working with the BioReference Health team to ensure a smooth transition following the close of the transaction. Combined with Labcorp's expertise and scale, we will help achieve better health outcomes for patients."
"Through this transaction we are able to significantly streamline our laboratory services business while retaining its core operations, positioning BioReference Health for sustained growth and profitability," said Phillip Frost, M.D., Chairman and Chief Executive Officer of OPKO. "This transaction is part of our previously announced effort to re-establish profitability at our clinical laboratory business while at the same time better positioning OPKO as an innovative biopharmaceutical company."
The assets that Labcorp will be acquiring currently generate approximately $100 million in annual revenue. The purchase price for the transaction is $237.5 million. The proposed acquisition meets Labcorp's strategic and financial criteria.
The transaction is subject to customary closing conditions and applicable regulatory approvals, including under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The transaction is anticipated to close in the second half of 2024.
Lazard is serving as Labcorp's financial advisor, and Hogan Lovells, Kilpatrick Townsend and Parker Poe are serving as legal counsel.
Piper Sandler & Co. is serving as OPKO's financial advisor, and Greenberg Traurig is serving as legal counsel.
