LabCorp purchases UK-based contract research organization Chiltern for $1.2 billion.
Merger & acquisition activity in the contract research market has been heightened in recent years, and it looks like the trend is continuing. The latest move was made by LabCorp, which announced the acquisition of UK-based contract research organization (CRO) Chiltern for $1.2 billion in cash. Chiltern’s sales for 2017 are estimated to be $550 million, and the company has a backlog value at $1 billion.
This purchase is taking place just two years after LabCorp acquired Covance in 2015 for $6 billion. Chiltern has made its own acquisitions as well – buying up Theorem Clinical Research in 2015 and Japanese CRO Integrated Development Associates (IDA) in May 2017, in order to expand its global presence.
LabCorp’s acquisition of the mid-sized Chiltern will, in turn, expand its global footprint, as well as add an additional 20,000 employees to its roster. LabCorp will also benefit from Chiltern’s expertise in medical device development and early clinical development, which complements Covance’s expertise in late stage clinical trials.
“Our acquisition of Covance has demonstrated the value of combining diagnostic and CRO capabilities, expertise, data and leadership,” said David King, Chairman and CEO of LabCorp.” The addition of Chiltern furthers our strategy and will provide us with enhanced capabilities across a broader client base as we continue to innovate and grow. This acquisition strengthens our position as a leading life sciences company that delivers innovative diagnostics and drug development solutions to improve health and improve lives.”
Added John Ratliff, CEO of Covance: “We now join with Chiltern to create a market-leading CRO, with more than 20,000 talented employees around the world. The addition enhances Covance’s offerings as a major partner serving the top 20 biopharma segment and expands our current offering to include a dedicated focus on the high-growth emerging and midmarket biopharma segments. We are very pleased to welcome the Chiltern team to the LabCorp family as we work together to realize the promise of this unique and powerful combination.”