Genzyme Corp. (NSDQ:GENZ) closed the divestiture of its genetic testing unit, Genzyme Genetics.
The Cambridge, Mass.-based biotech’s reproductive and oncology testing services business was bought by Laboratory Corporation of America Holdings (NYSE:LH).
The sale is the first of three divestitures that Genzyme is performing to help finance a planned $2 billion stock repurchase, according to the company. Earlier this month, Genzyme announced plans to sell off its diagnostics business to Tokyo-based Sekisui Chemical Co. Ltd. (TYO:4204) for $265 million in cash. The company is also planning to offload its pharmaceuticals business.
Burlington, N.C. based LabCorp announced the acquisition of the Genzyme Genetics unit in September. The all cash transaction was valued at $925 million, according to LabCorp, and will cost the company approximately $795 million, net of expected income tax benefits, less acquisition-related expenses, the company said.
"Closing the acquisition of Genzyme Genetics firmly establishes LabCorp as the premier genetics and oncology laboratory in the United States and further strengthens LabCorp’s leadership position in personalized medicine. We are excited to welcome the Genzyme Genetics personnel to our LabCorp family," said LabCorp CEO David King in prepared remarks.
One of LabCorp’s chief competitors is St. Paul, Minn.-based MedTox Scientific Inc. (NSDQ:MTOX).