Hughes Hubbard Assists Chiltern in $1.2B Sale to LabCorp

July 31, 2017 — Hughes Hubbard served as legal counsel to London-based contract-research organization Chiltern in its sale to diagnostics company Laboratory Corp of America Holdings for $1.2 billion in cash.

The deal, announced on July 31 and expected to close during the last three months of this year, will enhance LabCorp’s position as a global life sciences company with leading diagnostics and drug development businesses. Once the deal is complete, Chiltern will become part of LabCorp’s Covance unit, which conducts trials for drugmakers.

“Joining LabCorp and Covance will allow Chiltern to expand its collaborative approach to bring better, more personalized therapies to market for patients every day,” said Jim Esinhart, CEO of Chiltern. “Customers will benefit from the expanded capabilities this provides and our employees will have a greater opportunity to propel research into the future with strong, supportive partners.”

Since LabCorp acquired Covance in 2015, Covance’s business has grown to nearly $3 billion in revenue, according to John Ratliff, the company’s CEO. The addition of Chiltern will enhance Covance’s offerings as a major partner serving the top 20 biopharma segment.

“We are very pleased to welcome the Chiltern team to the LabCorp family as we work together to realize the promise of this unique and powerful combination,” Ratliff said.
 
The deal made headlines in The Wall Street Journal, Reuters and other news outlets. 

With more than 4,500 locations across 47 countries, Chiltern provides comprehensive clinical services and solutions in a variety of therapeutic areas with engagement models for biopharmaceutical and medical device industries.

Based in Burlington, N.C., LabCorp has 52,000 employees in approximately 60 countries.
 
Jim Modlin and David Schwartz led the HHR team, which included Jaime Steinfink, David Gold, Andy Braiterman, Spencer Harrison, Bill Kolasky and Erin DeCecchis.