Welsh, Carson, Anderson and Stowe has agreed to sell its portfolio company Solstas Lab Partners Group, a full-service commercial laboratory, to Quest Diagnostics for a total transaction value of approximately $570 million.
Solstas Lab Partners provides its clients and patients with a range of clinical, anatomic pathology and esoteric testing services, as well as comprehensive patient wellness programs. The company is one of the 10 largest full-service laboratories in the US, serving the Mid-Atlantic and Southern regions, as well as the District of Columbia. Solstas is headquartered in Greensboro, NC (www.solstas.com).
Quest Diagnostics (NYSE: DGX) is a provider of diagnostic information services to patients and doctors. The company offers access to diagnostic information services through its network of laboratories and patient service centers, and provides interpretive consultation through its medical and scientific staff. The company is headquartered in Madison, NJ (www.QuestDiagnostics.com).
“This acquisition represents an exciting opportunity for Quest and Solstas as well as our patients and customers in the region. Solstas has excellent client relationships and local presence in the Southeast, and we expect to build on the value of these assets with our broad and innovative test menu, scientific expertise and health IT solutions,” said Steve Rusckowski, President and CEO, Quest Diagnostics. “This combination will translate into better healthcare for the region because it will improve access to innovative, cost-effective diagnostic information services for patients, physicians and hospitals.”
Welsh, Carson, Anderson & Stowe is focused exclusively on investments in business, information and healthcare services. Since its founding in 1979, Welsh Carson has organized 15 limited partnerships with total capital of over $20 billion. The firm is currently investing through its latest fund, Welsh, Carson, Anderson & Stowe XI, LP, and is based in New York (www.welshcarson.com).
“Strategic partnerships between innovative laboratory providers is of critical importance during these changing times and most often result in superior, value-based solutions for customers,” said David Weavil, CEO, Solstas Lab Partners. “Quest has established itself as a trusted provider of innovation and quality solutions. We believe it is the right organization to help Solstas enhance and extend its services for physician practices, hospital systems and, most importantly, their patients.”
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-22-14