Laboratory Corporation of America Holdings (LabCorp), a marketer of new diagnostic technologies, has entered into a definitive agreement and plan of merger to take over the shares of Orchid Cellmark in a cash tender offer for $2.80 per share for a total purchase price to stockholders and option holders of approximately $85.4m.
Under the terms of the agreement and plan of merger, LabCorp has formed an acquisition subsidiary, OCM Acquisition Corp that will commence a tender offer to purchase all outstanding shares of Orchid Cellmark.
Orchid Cellmark is expected to strengthen LabCorp’s presence and brand name in identity testing in the US and establishes its presence in identity testing in the UK.
LabCorp CEO and Chairman David King said the proposed acquisition of Orchid Cellmark significantly diversifies and strengthens their specialized forensic and family relationship testing.
Orchid Cellmark Board of Directors chairman Eugene Davis said the transaction underscores the fundamental value of the Orchid Cellmark business, the talent and expertise the quality of their testing service offerings.