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Lab services M&A: Solstas buys Select Labs to grow footprint

North Carolina laboratory testing firm Select Diagnostics has been acquired by Solstas Lab Partners, which is steadily building its full-service laboratory offerings along the East Coast. Financial terms of Solstas’s bid for Greensboro, North Carolina-based Select were not disclosed, but the acquisition comes a week after Solstas, also based in Greensboro, received an investment from […]

North Carolina laboratory testing firm Select Diagnostics has been acquired by Solstas Lab Partners, which is steadily building its full-service laboratory offerings along the East Coast.

Financial terms of Solstas’s bid for Greensboro, North Carolina-based Select were not disclosed, but the acquisition comes a week after Solstas, also based in Greensboro, received an investment from healthcare venture capital fund Ascension Health Ventures. Financial terms of that investment also were not disclosed. Nevertheless, Solstas seems to be well capitalized for acquisitions. Ascension joins minority investors Carilion Clinic, Novant Health System and Wellmont Health System. Solstas’s primary financial backer is majority owner Welsh, Carson, Anderson & Stowe, a private equity firm.

Solstas itself is the product of laboratory industry M&A. In March 2010, Carilion Labs and Spectrum Laboratory Network merged, and yielded the name Carilion-Spectrum. Last September, Carilion-Spectrum acquired Doctors Laboratory, a Georgia company. Financial terms of that deal were not disclosed, but at that time, Carilion-Spectrum said the combined companies would have annual revenue that topped $350 million and more than 3,200 employees. Carilion-Spectrum changed its name to Solstas in February.

Select Diagnostics was established in 2001 by Ernie Knesel, one of the founders of the company that is now Burlington, North Carolina laboratory services and diagnostics company LabCorp (NYSE:LH). Solstas said that with the acquisition of Select, Solstas will have nearly 3,700 employees to provide a range of testing services to hospitals and other healthcare facilities in a nine-state footprint that stretches from the Northeast to the South.