BURLINGTON, NC (December 15, 2004) – Laboratory Corp. of America Holdings (LabCorp) and US Pathology Labs, Inc. (US Labs), a provider of anatomic pathology and oncology testing services with a focus on the outpatient market, have entered into a definitive agreement under which LabCorp will acquire all of the outstanding shares of US Labs for approximately $155 million in cash.
The transaction, which is subject to regulatory and US Labs shareholder approval, is expected to close in the first quarter of 2005.
“The proposed acquisition of US Labs is a key part of LabCorp’s efforts to continue to be a leading provider of anatomical pathology services, an important part of our cancer strategy,” said Tom MacMahon, LabCorp’s chairman and chief executive officer. “In addition to acquiring a leading independent pathology laboratory, this acquisition provides LabCorp the opportunity to perform other esoteric and genomic tests in US Labs’ California facility, a key strategic need to our organization.”
The US Labs management team has agreed “to continue on in their current responsibilities, as part of LabCorp,” MacMahon said.”
US Labs, based in Irvine, CA, provides diagnostic, prognostic, and predictive cancer testing services to hospitals, physician offices and surgery centers.
LabCorp labels itself as a pioneer in commercializing new diagnostic technologies and the first in its industry to embrace genomic testing. With annual revenues of $2.9 billion in 2003 and approximately 23,000 employees, LabCorp offers more than 4,400 clinical assays ranging from blood analyses to HIV and genomic testing.