LabCorp (NYSE:LH), after waiting eight months for regulators’ blessings, had a speedy wrap up of its $85 million acquisition of DNA testing company Orchid Cellmark.
Laboratory testing and diagnostics firm LabCorp secured the greater than 90 percent of shares in Orchid that allowed the company to proceed with a short-form merger, meaning the deal could go through without a shareholders meeting.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
Burlington, North Carolina-based LabCorp’s pursuit of Orchid dates to 2008. In September of that year, LabCorp sent an unsolicited, nonbinding indication of interest to acquire all of the Princeton, New Jersey company’s outstanding stock, according to Orchid regulatory filings. Discussions continued leading up to the acquisition announcement in April of this year, a move that strengthens LabCorp’s identity testing offerings and gives the company a presence in the United Kingdom, where Orchid is already established.
The companies expected to close the deal in May but the Federal Trade Commission asked for more information about the merger as part of a lengthy review of the deal. LabCorp extended its offer for Orchid nine times while regulators continued their review. Under an agreement with the Federal Trade Commission announced last week, LabCorp will sell parts of Orchid’s paternity business to DNA Diagnostics Center, a Fairfield, Ohio company.
With the completion of the acquisition, Orchid becomes a subsidiary of LabCorp and Orchid shares will cease trading on the NASDAQ exchange.
