Wednesday, January 27, 2010
Carilion Labs merger to form one of the largest lab service companies in U.S.
Carilion Clinic's lab company has entered an agreement to merge with a larger North Carolina lab company to form one of the largest laboratory service companies in the nation.
The merger of Carilion Labs and Greensboro, N.C.-based Spectrum Laboratory Network forms a private company with more than 2,600 employees and annual revenues of more than $300 million.
Carilion will own 33 percent of the new company and current employees will keep their jobs. Carilion will also have three seats on the board of the new company, one of which will be filled by Carilion CEO Dr. Ed Murphy.
"We brought Carilion Labs as far as we could with our resources," Murphy said. "This is a business line that we expect to be able to grow and to be more valuable and more profitable. So we can use the value and income to help sustain a lot of the things we do for indigent care to medical education to clinical research."
The merger creates a company serving 37 hospitals and 14,000 physicians in eight mid-Atlantic states.
Because of the size of the deal, the merger must first be approved by the Federal Trade Commission. But the deal is expected to close by the end of February.
Spectrum Laboratory Network was recently purchased by the private equity firm Welsh, Carson, Anderson and Stowe. Murphy said the equity firm brings the financial resources needed for the business to see "considerable" growth over the next five years.
The merger of Carilion Labs and Greensboro, N.C.-based Spectrum Laboratory Network forms a private company with more than 2,600 employees and annual revenues of more than $300 million.
Carilion will own 33 percent of the new company and current employees will keep their jobs. Carilion will also have three seats on the board of the new company, one of which will be filled by Carilion CEO Dr. Ed Murphy.
"We brought Carilion Labs as far as we could with our resources," Murphy said. "This is a business line that we expect to be able to grow and to be more valuable and more profitable. So we can use the value and income to help sustain a lot of the things we do for indigent care to medical education to clinical research."
The merger creates a company serving 37 hospitals and 14,000 physicians in eight mid-Atlantic states.
Because of the size of the deal, the merger must first be approved by the Federal Trade Commission. But the deal is expected to close by the end of February.
Spectrum Laboratory Network was recently purchased by the private equity firm Welsh, Carson, Anderson and Stowe. Murphy said the equity firm brings the financial resources needed for the business to see "considerable" growth over the next five years.
