LabCorp to sell Covance Food Solutions to Eurofins in $670m deal

Food acquisition news : LabCorp, a global life sciences company has struck a $670 million deal to divest its food testing and consulting business – Covance Food Solutions to testing laboratories company Eurofins Scientific.

The offloading of Covance Food Solutions by LabCorp is being done to focus on its main mission of enhancing health and improving lives while giving better scope for the food testing and consulting business to cater to the global food supply industry.

LabCorp’s sale of Covance Food Solutions comes nearly three years after becoming its new owner through the $6.2 billion acquisition of contract research organization Covance.

Eurofins acquisition of Covance Food Solutions

Commenting on Eurofins acquisition of Covance Food Solutions, David P. King – CEO of LabCorp, said: “Eurofins has an outstanding reputation in the food quality and development business, which will be enhanced with the addition of LabCorp’s Covance Food Solutions business, offering increased opportunities for its employees and more comprehensive services for customers.”

Business deal done. Photo courtesy of adamr at FreeDigitalPhotos.net.

The New Jersey-based Covance Food Solutions provides solutions for product integrity and product safety apart from consulting services to end-user segments in the complete food supply chain.

Covance Food Solutions’ clients are given normal and specialized lab testing, and consultation which are concentrated on product safety, product quality and ensuring that their current and in-development food, beverage and supplement products adhere to defined internal and external standards.

Eurofins acquisition of Covance Food Solutions is expected to help the former grow its presence in North America, Asia and the UK while widening its portfolio of food products testing business.

Covance Food Solutions had registered revenue of about $150m last year. The company boasts of an integrated network of a dozen facilities across the US, UK and Singapore, while employing 850 people.

Gilles Martin – CEO of Eurofins Scientific, commenting on Eurofins acquisition of Covance Food Solutions, said: “We are extremely pleased to welcome LabCorp’s Covance Food Solutions and its talented teams to the Eurofins Group. Its 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.”

Eurofins acquisition of Covance Food Solutions is likely to be wrapped up in Q3 2018 should it satisfy customary closing conditions apart from getting all the necessary regulatory approvals.