Laboratory Corp. of America Holdings (LabCorp) has agreed to acquire the full-service independent women's health laboratory Pathology for an undisclosed price.
Under the deal, LabCorp acquired substantially all of Pathology’s operating assets, including the patient service centers where the company to be acquired conducted its medical testing and services business. Pathology operates 50 patient service centers in California, as well as sites in Illinois, Missouri, and Oregon.
Headquartered in Torrance, CA, Pathology has focused on providing expertise in reproductive FDA donor testing as well as anatomic, molecular, and digital pathology services.
“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,” LabCorp chairman and CEO David P. King said in a statement..
King added that the deal meets LabCorp’s financial criteria of being accretive to earnings within a year after completion, and earning back its cost of capital by year three.
Pathology will cease operations upon closing of the deal, which is expected to occur in the first quarter of 2016. 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.