Quest Diagnostics Completes Acquisition of Lab-Related Clinical Outreach Operations of Dignity Health
Acquisition consistent with strategy to drive one to two percent in growth per year through strategically aligned fold-in acquisitions
MADISON, N.J. and SAN FRANCISCO, June 24, 2013 /PRNewswire/ — Quest Diagnostics (NYSE: DGX), the world’s leading provider of diagnostic information services, announced today that it has completed the previously announced acquisition of lab-related clinical outreach service operations of Dignity Health, a hospital system based in California.
Quest Diagnostics will perform testing for the acquired operations through its clinical laboratories in West Hills and Sacramento, Calif., and Las Vegas, Nevada. The acquisition includes patient service centers and associated business in parts of California and Nevada. Dignity Health’s hospital-based laboratories are not included in the sale. Additional terms were not disclosed.
Quest Diagnostics continues to expect the transaction to be neutral to adjusted earnings in 2013 and modestly accretive to earnings per share in 2014. The company also expects it to contribute about half a percentage point to consolidated revenues annually.
The acquisition, which is the company’s third of a laboratory business in 2013, is consistent with the five-point strategy described by Quest Diagnostics late last year. This strategy includes delivering disciplined capital deployment and driving one to two percent in growth per year through strategically aligned fold-in acquisitions. In May, the company announced it had acquired the toxicology and clinical laboratory business of medical center operator Concentra, a subsidiary of Humana Inc. In January, the company completed the acquisition of the clinical and anatomic-pathology outreach laboratory businesses of Massachusetts-based UMass Memorial Medical Center.
About Dignity Health
Headquartered in San Francisco, Dignity Health is dedicated to providing compassionate, high-quality and affordable patient-centered care with special attention to the poor and underserved. In 2012, Dignity Health provided $1.6 billion in charitable care and services. For more information, please visit the Dignity Health website at www.dignityhealth.org. You can also follow Dignity Health on Twitter and Facebook.
About Quest Diagnostics
Quest Diagnostics is the world’s leading provider of diagnostic information services that patients and doctors need to make better healthcare decisions. The company offers the broadest access to diagnostic information services through its network of laboratories and patient service centers, and provides interpretive consultation through its extensive medical and scientific staff. Quest Diagnostics is a pioneer in developing innovative diagnostic tests and advanced healthcare information technology solutions that help improve patient care. Additional company information is available at QuestDiagnostics.com. Follow us at Facebook.com/QuestDiagnostics and Twitter.com/QuestDX.
Quest, Quest Diagnostics, and all associated Quest Diagnostics registered or unregistered trademarks are the property of Quest Diagnostics. All third-party marks are the property of their respective owners.
Quest Diagnostics Contacts:
Wendy Bost (Media): 973-520-2800
Dan Haemmerle (Investors): 973-520-2900
SOURCE Quest Diagnostics