LabCorp buying Chiltern for $1.2 billion

Paterniano Del Favero
Agosto 2, 2017

Diagnostics company Laboratory Corp of America Holdings said on Monday it would buy privately owned contract research organization (CRO) Chiltern International Ltd for almost $1.2 billion in cash to expand its oncology offerings.

The company said the deal would create leading oncology expertise, leveraging Covance's extensive experience in late-stage studies with Chiltern's early-stage development offerings. Chiltern is expected to have 2017 revenue of about $550 million and backlog of $1 billion.

With an global presence, LabCorp will be further able to develop its leading diagnostics and drug development business globally, provide customised models for emerging biopharma clients and guarantee oncology expertise.

LabCorp chairman and CEO David King said: "Our acquisition of Covance has demonstrated the value of combining diagnostic and CRO capabilities, expertise, data and leadership".

A little more than two years after paying $6.1 billion for Covance, LabCorp has now followed up with a $1.2 billion cash deal for Chiltern, adding another 4,500 clinical outsourcing workers around the globe to its employee roster.

"The addition of Chiltern furthers our strategy and will provide us with enhanced capabilities across a broader client base as we continue to innovate and grow". "The (Chiltern) addition enhances Covance's offerings as a major partner serving the top 20 biopharma segment and expands our current offering to include a dedicated focus on the high-growth emerging and mid-market biopharma segments", he said in a statement. "We are very pleased to welcome the Chiltern team to the LabCorp family as we work together to realize the promise of this unique and powerful combination". M&A spending in the CRO industry was $24 billion in 2016, with deals already reaching $14.2 billion so far this year.

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