In a continued consolidation of the testing industry, Eurofins Scientific, a leader in bioanalytical testing, has agreed to acquire Covance Food Solutions from Lab Corp. for $670 million, the company announced.
Covance Food Solutions provides product integrity, product safety and consulting solutions for segments that span the entire food supply chain. The transaction is expected to close in the third quarter of 2018.
Covance Food Solutions became part of LabCorp in 2015 and offers an extensive set of routine and specialized laboratory testing and consulting services focused on ensuring product safety, quality and adherence to targeted internal and external standards for existing and in-development food, beverage and supplement products.
Covance Food Solutions operates an integrated network of 12 facilities across the globe (9 in the US, 2 in the UK and 1 in Asia) It employs 850 and expects to generate revenues of approximately $160 million in 2018, with an EBITDA margin well in excess of Eurofins objectives, the company said.
Eurofins and Covance Food Solutions operate in complementary geographic and service areas, which means no restructuring will be involved and each organization’s clients will gain expanded offerings, the company said.
Covance Food Solutions’ “competencies, reputation for scientific excellence and complementary geographic footprint, client focus and service offerings further strengthen Eurofins’ global offering in the very competitive food testing market,” said Dr. Gilles Martin, Eurofins CEO. “We look forward to working together as an integrated network of independent state-of-the-art laboratories providing our customers access to the full range of services and technological capabilities of the combined Group.”