LabCorp announced on Monday to acquire Covance in cash and stock deal for about $6.1 Billion.
“Thist transaction provides LabCorp with immediate scale and a comprehensive market-leading platform in the $141 billion biopharmaceutical research and development market, while at the same time achieving the new sources of revenue, broader payor mix, and greater international presence we have long pursued,” David P. King, LabCorp’s chairman and chief executive, said in statement.
Labcorp’s exeutives will keep their current roles. CEO and Chairman Joe Herring will lead that busienss.
Under the terms of deal, LabCorp will pay $105.12 per share, its 32 percent premium in close of Covance shares price on Friday. Covance shareholders will receive 75.76 in cash and 0.2686 of LabCorp share for each their share. They will be owners of 15.5 percent of the combined company.
This deal is expected to close first three months of 2015.
LabCorp advisors were Lazard, Bank of America Merrill Lynch, Wells Fargo and the law firms Sullivan & Cromwell and Hogan Lovells. Covance was advised by Goldman Sachs and the law firms Cravath, Swaine & Moore and Covington & Burling.
Mr. Stakebay says:
This merger makes one of the biggest providers of contract medical research and gives bigger presence in the drug development research and animal testing businesses.
Chairman and CEO of Labcorp………..DAVID P. KING……….(2007-present)……..$9 280 996 (2013)
Chairman and CEO of Covance……….JOE HERRING………..(2001-present)……..$8 965 104 (2013)