Laboratory Corporation of America Holdings (LabCorp), a Burlington, N.C.-based healthcare diagnostics company, 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’s medical testing and services business.
Pathology is a full-service, independent women’s health laboratory, providing expertise in reproductive FDA donor testing as well as anatomic, molecular and digital pathology services.
“Pathology 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’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 will cease operations.