LabCorp says it is not in talks after rumours that it is a private-equity takeover target.
In a statement released earlier today the testing services firm said: “it is aware of the recent reports regarding possible plans by private equity firms to seek to effect a leveraged buyout of the Company.
“The Company has no knowledge of any such plans and is not in current discussions with any firms to effect such a transaction.”
The comment follows a report by Debtwire , which suggested that at least two private-equity groups are considering a leveraged buyout (LBO).
According to an unnamed source quoted by the newswire: "A sponsor group consisting of at least two anchor firms is working to assemble a financing package that would push the debt market’s limits.
"BofA Merrill Lynch is spearheading the consortium’s effort to raise LBO capital, and would likely have to partner with other banks to help underwrite a multibillion dollar deal."
Medtox takeover completed
The news follows just a day after LabCorp acquired Medtox Scientific - a provider of central laboratory and bio-analytical testing services for pharmaceutical clinical trials.
In a statement released yesterday LabCorp said: "Medtox’s stockholders approved the acquisition and the transaction closed promptly thereafter."
The firm added that trading in Medtox shares on the Nasdaq global select market has been suspended.
The deal is the second time LabCorp has expanded its central laboratories business through acquisition in a little over a year following its takeover of Clearstone Central Labs in June 2011.
Speaking when the buyout was announced in June LabCorp CEO David King said: “MEDTOX is an industry leader in specialized toxicology testing.
"This acquisition provides a strong foundation for growth in this business, as we build and expand LabCorp's Toxicology Center of Excellence and add to the unrivaled assets of the LabCorp Specialty Testing Group."