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CRL buying IRGI for $1.5 billion

July 1, 2004 7:00 AM UTC

Preclinical services company Charles River (CRL) will acquire CRO Inveresk Research Group (IRGI) in a stock and cash deal worth $1.5 billion based on CRL's June 30 closing price of $48.87. IRGI shareholders will receive 0.48 shares of CRL common stock and $15.15 in cash for each IRGI share, for a total of $38.61 per share. CRL shareholders will own about 73% of the company, and IRGI will own about 27%. The deal is expected to close in the fourth quarter.

CRL said the deal will allow it to provide R&D services from early discovery through Phase IV development. CRL said the combination will create a company with approximately $920 million in revenues based on the 12 months ended March 2004. For the first quarter of 2004, CRL posted $172.6 million in sales, while IRGI posted revenue of $76.7 million. ...