Labcorp Sells Covance for $1.5 Billion

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

From the Filing

0000920148-24-000027.txt : 20240411 0000920148-24-000027.hdr.sgml : 20240411 20240411083827 ACCESSION NUMBER: 0000920148-24-000027 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20240410 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240411 DATE AS OF CHANGE: 20240411 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LABORATORY CORP OF AMERICA HOLDINGS CENTRAL INDEX KEY: 0000920148 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEDICAL LABORATORIES [8071] ORGANIZATION NAME: 08 Industrial Applications and Services IRS NUMBER: 133757370 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11353 FILM NUMBER: 24837210 BUSINESS ADDRESS: STREET 1: 358 S MAIN ST CITY: BURLINGTON STATE: NC ZIP: 27215 BUSINESS PHONE: 3362291127 MAIL ADDRESS: STREET 1: 358 S MAIN ST CITY: BURLINGTON STATE: NC ZIP: 27215 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL HEALTH LABORATORIES HOLDINGS INC DATE OF NAME CHANGE: 19940314 8-K 1 lh-20240410.htm 8-K lh-20240410 April 10, 2024 0000920148 false 0000920148 2024-04-10 2024-04-10 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C.  20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 April 10, 2024 (Date of earliest event reported) LABORATORY CORPORATION OF AMERICA HOLDINGS (Exact Name of Registrant as Specified in its Charter) Delaware 1-11353 13-3757370 (State or other jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.) 358 South Main Street   Burlington, North Carolina 27215 (Address of principal executive offices) (Zip Code) (Registrant’s telephone number including area code) 336 - 229-1127 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Exchange Act. Title of Each Class            Trading Symbol            Name of exchange on which registered Common Stock , $0.10 par value          LH                  New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).                                                      Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 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