Genzyme completes sale of genetic testing business to LabCorp
10 Dec 2010
Genzyme Corporation (Nasdaq: GENZ) has announced it has completed the sale of Genzyme Genetics to Laboratory Corporation of America Holdings (NYSE: LH) for $925 million in cash.
Under the final terms of the agreement, LabCorp purchased substantially all of the assets of the Genzyme Genetics business, including testing services, technology, intellectual property rights, and the rights to continue operations at the unit’s nine genetic testing laboratories. All employees of Genzyme Genetics were offered similar positions at LabCorp.
This sale to LabCorp represents the successful completion of the first of three planned divestitures previously announced by Genzyme. Earlier this month, the company announced that it has entered into an asset purchase agreement under which Sekisui Chemical Co., Ltd. will acquire Genzyme’s Diagnostic products business for $265 million in cash. The company also plans to divest its Pharmaceuticals business. Proceeds from these three transactions may be used to finance the remaining half of the company’s planned $2 billion stock repurchase.