Health Care Deal News: Spotlight on Labs, MRI & Dialysis

Thermo Fisher Scientific (NYSE: TMO) announced two divestments. In the first, it is selling Athena Diagnostics, a company that provides diagnostic testing services for neurological diseases, to Quest Diagnostics (NYSE: DGX) for $740.0 million in cash. This acquisition, valued at 6.7x revenue, establishes TMO as a leader in esoteric and genetic testing for neurology. In the second deal, TMO is selling Lancaster Laboratories, a contract-testing lab for drug and environmental sciences companies, to Eurofins Scientific (PA: EUFI) for $200.0 million in cash.  Based in France, EUFI provides testing services for the pharmaceutical, food and environmental industries. This bolt-on acquisition, valued at 1.7x revenue, strengthens the company’s presence in North America.

DaVita (NYSE: DVA) is paying $689.2 million to acquire DSI Renal, a competitor that operates 106 dialysis centers which serve approximately 8,000 end-stage renal disease patients. Valued at $86,150 per ESRD patient and 1.9x revenue, this acquisition expands DaVita’s network of dialysis centers. The company intends to bring its broader line of chronic kidney disease products and services to DSI’s patient base. Credit Suisse provided DVA with financial advice on this deal...Want to read more? Click here for a free trial to The Health Care M&A Monthly and download the current issue today