Quest Diagnostics (NYSE: DGX), the world's leading provider of diagnostic information services, announced today that it has acquired the toxicology and clinical laboratory business of medical center operator Concentra, a subsidiary of Humana Inc. (NYSE: HUM). In addition, Quest Diagnostics has entered into a long-term agreement with Concentra to be its primary provider of workplace drug toxicology and clinical laboratory testing.
"With this transaction, Concentra's patients, physicians and employer clients will gain access to Quest's industry-leading menu of innovative workplace drug and clinical lab diagnostic information services," said Steve Rusckowski, President and CEO, Quest Diagnostics. "The transaction is also consistent with Quest's disciplined capital deployment strategy, which includes generating one to two percent in growth per year through strategically aligned fold-in acquisitions."
Quest Diagnostics has acquired the assets of Concentra's Advanced Toxicology Network (ATN) laboratory business, which operates from a laboratory in Memphis, Tennessee, that serves clients nationally. This business will be transitioned into the Quest Diagnostics national laboratory network of regional clinical and toxicology laboratories by the end of 2013. Under the service agreement, Quest will provide workplace drug toxicology testing services primarily to Concentra and its employer clients and clinical laboratory testing services to patients and physicians in Concentra's network of primary care and urgent care facilities. Additional terms were not disclosed.
Quest Diagnostics expects the transaction to be neutral to adjusted earnings per share in 2013 and modestly accretive to earnings per share in 2014.
This is Quest Diagnostics' third announcement regarding an acquisition of a laboratory business in 2013. In April, Quest Diagnostics announced plans to acquire the lab-related clinical outreach operations of Dignity Health in California and Nevada. In January, the company completed the acquisition of the clinical and anatomic-pathology outreach laboratory businesses of Massachusetts-based UMass Memorial Medical Center.
SOURCE Quest Diagnostics Incorporated