Labcorp and Opko Health subsidiary BioReference Health have announced that they have made an agreement for Labcorp to acquire certain of BioReference Health’s assets.
Under the agreement, Labcorp will acquire BioReference Health's laboratory testing businesses focused on clinical diagnostics and reproductive and women's health throughout the U.S., excluding New York and New Jersey. BioReference Health will retain its oncology and urology diagnostic businesses nationwide, as well as its full operations in New York and New Jersey.
This transaction will include BioReference Health’s patient service centers (PSCs) and certain customer contracts and operating assets.
In a statement, the firms said that the purchase price for the transaction is $237.5 million; the assets that Labcorp will acquire currently generate approximately $100 million in annual revenue. The transaction is subject to customary closing conditions and applicable regulatory approvals, and is anticipated to close in the second half of 2024.
The transaction will expand Labcorp’s laboratory services network; additionally, the firm says that the acquisition will provide greater access for patients, doctors, and customers to the company’s comprehensive laboratory services, scientific expertise, and expanded testing capabilities in key regions across the country.
Lazard is serving as Labcorp's financial advisor, and Hogan Lovells, Kilpatrick Townsend, and Parker Poe are serving as the company’s legal counsel. Piper Sandler & Co. is serving as Opko Health's financial advisor, and Greenberg Traurig is serving as the firm’s legal counsel.
