LabCorp Transaction Details
The transactions resulted in net implied cash consideration paid by LabCorp of $485 million. The net impact of the proposed transactions is an incremental $156 million in LabCorp’s revenue on a pro forma 2018 basis. The transactions are expected to meet LabCorp’s financial criteria of earnings and cash accretion in year one and exceed the cost of capital by year three.
About LabCorp
LabCorp (NYSE: LH), an S&P 500 company, is a leading global life sciences company that is deeply integrated in guiding patient care, providing comprehensive clinical laboratory andend-to-end drug development services. With a mission to improve health and improve lives, LabCorp delivers world-class diagnostic solutions, brings innovative medicines to patients faster, and uses technology to improve the delivery of care. LabCorp reported revenues of more than $11 billion in 2018. To learn more about LabCorp, visitwww.LabCorp.com, and to learn more about Covance Drug Development, visitwww.Covance.com.
AboutEnvigo
Envigo provides the broadest range of standard research models to the pharmaceutical and biotechnology industries, government, academia and other life science organizations. As the largest organization that is solely dedicated to providing research models and related products and services, we are committed to helping researchers realize the full potential of their critical R&D projects as we fulfill our mission to work together to build a healthier and safer world. To learn more about Envigo’s products and services, visitwww.envigo.com.
LabCorp Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws with respect to the transaction between LabCorp and Envigo, including statements regarding the benefits of the transaction and the products and markets of each company. These forward-looking statements generally are identified by the words “believe,” “project,” “forecast,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results could differ materially from those suggested by the forward-looking statements in this press release, due to factors including but not limited to: the successful integration of Envigo’s nonclinical business into the Covance Drug Development nonclinical business; adverse reactions to the integration by customers, suppliers or strategic partners; dependence on key personnel and customers; reliance on proprietary technology; management of growth and organizational change; failure to executive the multi-year, renewable supply agreement between Covance and Envigo; and competitive actions in the marketplace. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect the businesses of LabCorp described in the RISK FACTORS section of LabCorp’s Annual Report on Form10-K for the year ended December 31, 2018, subsequent Quarterly Reports on Form10-Q, and in LabCorp’s other filings with the SEC. The information in this press release should be read in conjunction with a review of LabCorp’s SEC filings, including the information under the heading MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
