Genzyme, LabCorp deal

LabCorp will acquire Genzyme's Genzyme Genetics testing business for $925 million in cash. LabCorp said the deal will expand its capabilities in reproductive, genetic, hematology, oncology and clinical trials central laboratory testing. According to Genzyme, LabCorp has committed to offer employment to the unit's 1,900 employees, including senior management. The genetic testing unit had 2009 revenues of $371 million.

In May, Genzyme said it planned to pursue strategic alternatives for three of its businesses, including Genzyme Genetics, buy back $2 billion in stock and reduce costs. The biotech said it may use a portion of the proceeds from the deal for the buyback. LabCorp plans to finance the deal, which is expected to close before year end, through a debt financing from Citi. Credit Suisse and Goldman Sachs advised Genzyme. Citi and Lazard advised LabCorp. ...