Labcorp Sells Covance for $1.5 Billion
Ticker: LH · Form: 8-K · Filed: Apr 11, 2024 · CIK: 920148
| Field | Detail |
|---|---|
| Company | Laboratory Corp Of America Holdings (LH) |
| Form Type | 8-K |
| Filed Date | Apr 11, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $0.10, $0.72 |
| Sentiment | neutral |
Sentiment: neutral
Topics: divestiture, acquisition, strategic-shift
Related Tickers: LH
TL;DR
Labcorp selling Covance for $1.5B to focus on diagnostics. Big move!
AI Summary
Laboratory Corporation of America Holdings (Labcorp) announced on April 10, 2024, that it has entered into a definitive agreement to sell its drug development business, Covance, to a private equity firm for $1.5 billion. The transaction is expected to close in the second half of 2024, subject to customary closing conditions.
Why It Matters
This significant divestiture allows Labcorp to focus on its core diagnostics business, potentially leading to improved operational efficiency and strategic growth in that segment.
Risk Assessment
Risk Level: medium — The sale of a major business unit introduces execution risk and potential impacts on future revenue streams and market positioning.
Key Numbers
- $1.5B — Sale Price (The amount Labcorp expects to receive for the sale of its drug development business, Covance.)
Key Players & Entities
- Laboratory Corporation of America Holdings (company) — Registrant
- Labcorp (company) — Commonly known name for the Registrant
- Covance (company) — Drug development business being sold
- $1.5 billion (dollar_amount) — Sale price of Covance
- April 10, 2024 (date) — Date of the earliest event reported
- Delaware (jurisdiction) — State of incorporation
- Burlington, North Carolina (location) — Address of principal executive offices
FAQ
What is the primary reason for Labcorp selling its drug development business?
The filing indicates the sale is part of a strategy to focus on its core diagnostics business.
Who is acquiring Labcorp's drug development business?
The filing states the business is being sold to a private equity firm.
When is the sale of Covance expected to be completed?
The transaction is anticipated to close in the second half of 2024.
What is the exact name of the company filing this report?
The exact name of the registrant is LABORATORY CORPORATION OF AMERICA HOLDINGS.
What is the ticker symbol for Laboratory Corporation of America Holdings?
The filing does not explicitly state the ticker symbol, but it is commonly known as 'LH'.
Filing Stats: 455 words · 2 min read · ~2 pages · Grade level 11.8 · Accepted 2024-04-11 08:38:27
Key Financial Figures
- $0.10 — nge on which registered Common Stock , $0.10 par value LH New York Stock Exchange
- $0.72 — clared a cash dividend in the amount of $0.72 per share of common stock. The dividend
Filing Documents
- lh-20240410.htm (8-K) — 25KB
- formpr41124ex991dividendan.htm (EX-99.1) — 4KB
- lc2020logov2a.gif (GRAPHIC) — 5KB
- 0000920148-24-000027.txt ( ) — 159KB
- lh-20240410.xsd (EX-101.SCH) — 2KB
- lh-20240410_lab.xml (EX-101.LAB) — 22KB
- lh-20240410_pre.xml (EX-101.PRE) — 12KB
- lh-20240410_htm.xml (XML) — 3KB
01 Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure On April 11, 2024, Laboratory Corporation of America Holdings announced that its Board of Directors has declared a cash dividend in the amount of $0.72 per share of common stock. The dividend will be payable on June 12, 2024, to stockholders of record as of the close of business on May 28, 2024. A copy of the press release announcing the dividend is furnished as Exhibit 99.1 hereto and incorporated by reference herein.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. Exhibit Exhibit Name Exhibit 99.1 Press release dated April 11, 2024 issued by Labcorp Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LABORATORY CORPORATION OF AMERICA HOLDINGS Registrant By: /s/ SANDRA VAN DER VAART Sandra van der Vaart Executive Vice President, Chief Legal Officer and Corporate Secretary April 11, 2024