Hooper Holmes enters into Strategic Alliance Agreement with Clinical Reference Laboratory
Published on April 16, 2014 at 9:10 AM
Hooper Holmes (NYSE MKT:HH) and Clinical Reference Laboratory, Inc. (CRL) today announced that they have entered into a Strategic Alliance Agreement under which CRL will become Hooper Holmes' exclusive provider of laboratory testing services and Hooper Holmes will become a member of CRL's preferred provider network for wellness programs.
Under the agreement, Hooper Holmes will also sell the assets and businesses comprising Heritage Labs International, LLC. and Hooper Holmes Services to CRL for $3.7 million. The transaction is expected to close in the late second quarter or early third quarter of 2014.
This transaction will provide Hooper Holmes with additional capital to invest as it focuses on growth supporting Health & Wellness programs, clinical research and government studies. As part of the strategic alliance agreement, Hooper Holmes will also gain access to CRL's wide range of laboratory testing capabilities, subject to defined standards of performance.
Hooper Holmes will retain its sample kit assembly and supply chain fulfillment capabilities, which continue to support Health & Wellness operations and other customers.
Henry Dubois, President and CEO of Hooper Holmes commented, "We believe our Strategic Alliance with CRL will accelerate Hooper's growth in health care services and provide improved results for our shareholders. Laboratory testing is an important and growing component of Wellness programs and CRL is an industry leader, performing more than 100 million tests annually. We are excited to bring CRL's vast range of lab testing services to our Health & Wellness customers."
Mr. Dubois continued, "Hooper Holmes' involvement in the life insurance sector will come to an end when this transaction closes, concluding a transition that began with the sale of Portamedic in 2013. Our Company will be purely focused on Health & Wellness and our alliance with CRL will allow us to offer state-of-the-art testing capabilities to our customers."
Tim Sotos, Chairman of the Board and CEO of CRL commented, "CRL is delighted to partner with Hooper Holmes on laboratory testing and to welcome Hooper as a member of CRL's preferred provider network for wellness programs. We are pleased to expand the range of services we offer to the life insurance industry. This strategic alliance is a natural extension of our vision to be the undisputed leader in the markets we serve."
Cantor Fitzgerald & Co. is acting as the financial advisor to Hooper Holmes.