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Quest to buy Solstas for $570 million

Staff writer ▼ | January 24, 2014
Quest Diagnostics has entered into a definitive agreement under which it will acquire Solstas Lab Partners Group and its subsidiaries (Solstas) for a total transaction value of approximately $570 million.
Quest Diagnostics
Quest DiagnosticsQuest Diagnostics has entered into a definitive agreement under which it will acquire Solstas Lab Partners Group and its subsidiaries (Solstas) for a total transaction value of approximately $570 million.


Solstas is a portfolio company of Welsh, Carson, Anderson and Stowe, a private-equity firm specializing in information/business services and healthcare businesses.

Solstas is a full-service commercial laboratory company based in Greensboro, North Carolina. The company operates in nine states throughout the Southeastern United States, including the Carolinas, Virginia, Tennessee, Georgia and Alabama.

Quest Diagnostics expects the transaction to add approximately 5% in annualized revenues, about 1% of which will be from professional lab services, and be modestly accretive to adjusted earnings per share in 2014. The company expects to complete the acquisition in the first half of 2014, subject to the satisfaction of customary closing conditions.

"This acquisition represents an exciting opportunity for Quest and Solstas as well as our patients and customers in the region. Solstas has excellent client relationships and local presence in the Southeast, and we expect to build on the value of these assets with our broad and innovative test menu, scientific expertise and health IT solutions," said Steve Rusckowski, president and CEO, Quest Diagnostics.

Quest Diagnostics has a successful track record of innovation in diagnostic information and testing services that help improve patient care. It also provides professional laboratory services to help hospitals and health systems manage their laboratories to promote quality and cost efficiencies.

"Strategic partnerships between innovative laboratory providers is of critical importance during these changing times and most often result in superior, value-based solutions for customers," said David C. Weavil, CEO, Solstas Lab Partners.


 

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