LIfeLabs Purchased by Quest Diagnostics

A formal agreement has been announced by Quest Diagnostics to purchase LifeLabs, a Canadian supplier of laboratory testing, from pension fund business OMERS. The purchase is valued at roughly C$1.35bn ($985m), net debt included.

Through the purchase, LifeLabs will get access to Quest’s assets and knowledge while maintaining its Canadian headquarters, brand, and leadership team.

LifeLabs president and CEO Charles Brown stated: “Quest is the right partner to build on the strengths of LifeLabs and align with our strategic path, which focuses on enhancing the accessibility and quality of services that we provide to millions of Canadians.’’

He continued: “Together, we’ll grow LifeLabs and provide more Canadians with access to the advanced diagnostics they rely on, closer to home. We sincerely thank OMERS for its investment, leadership, and valued collaboration over 17 years.”

The strategic alignment of Quest’s development aspirations with the acquisition of LifeLabs’s stock is anticipated to provide about C$970m ($710m) in yearly revenues from the merger.

With usual closing terms and clearances from Canadian regulatory bodies, the acquisition is anticipated to close by year’s end.