The infrastructure arm of Canadian pension fund OMERS is selling Canadian community laboratory firm LifeLabs to Quest Diagnostics for C$1.35bn (€918m).
OMERS Infrastructure, which has owned LifeLabs since 2007, said it has agreed to sell the business to the NYSE-listed provider of diagnostic information services at a price that includes net debt.
Quest Diagnostics expects to fund the acquisition with its existing cash and debt.
OMERS said it expects the transaction to generate approximately C$970m in annual revenue.
LifeLabs, the largest community laboratory in Canada, provides laboratory testing services predominantly in the provinces of Ontario and British Columbia.
Jim Davis, chairman and CEO and president of Quest Diagnostics, said: “Quest has supported laboratories, hospitals and academic centres in Canada with specialised testing services for over two decades, including during the COVID-19 pandemic.
“This transaction is predicated on our strong belief that we can help LifeLabs accelerate growth and improve healthcare.”
Michael Hill, EVP and global head of infrastructure at OMERS, said: “OMERS is proud to have supported LifeLabs’ growth over the last 17 years. Our purchase in 2007 and subsequent investments have helped LifeLabs grow into a great Canadian success story.
“Quest is uniquely equipped to expand the service offering at LifeLabs, bringing new innovations to this market while extending access for patients in Canada.”
Charles Brown, president and CEO of LifeLabs, said: “Quest is the right partner to build on the strengths of LifeLabs and align with our strategic path, which focuses on enhancing the accessibility and quality of services that we provide to millions of Canadians.
“We know and respect Quest, as we share similar cultures and values and a productive test-reference relationship.”
Matthew Mendell, managing director at OMERS Infrastructure, said: “Under OMERS ownership, LifeLabs has become a market leader in Canada with a broad range of testing capabilities.
“We are pleased that Quest will continue to develop and deliver these meaningful offerings to Canadians.”
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