Quest Diagnostics will acquire all of AML's operations, including two
full-service laboratories, 51 patient service centers, and hospital sales,
service and logistics capabilities. AML also has an anatomic pathology business
served by approximately 30 board-certified specialty pathologists. As part of
the transaction, and prior to the closing, AML will acquire an affiliated
company, LabPortal, Inc., a provider of electronic healthcare connectivity
products. The transaction is subject to customary regulatory review. Quest
Diagnostics expects to use cash on hand and existing credit facilities to
finance the acquisition. The acquisition is expected to enhance revenue growth
and be modestly accretive to earnings during the first year, before anticipated
charges related to the transaction.
"Joining together two of the nation's most respected laboratories will enhance
service offerings for our customers, further strengthening our leadership
position in esoteric testing," said Kenneth W. Freeman, Chairman and Chief
Executive Officer of Quest Diagnostics. "AML has distinguished itself through
its dedicated hospital customer service capability, and its east coast reference
laboratory will complement our Nichols Institute on the west coast. In addition,
we will broaden our geographic reach through AML's leadership in the Nevada and
metropolitan Washington, D.C., markets."
The combination is expected to significantly enhance customer service by
offering a wide range of benefits, including: faster turnaround time; improved
access to a broad menu of esoteric tests; greater convenience through an
expanded network of patient service centers; improved access to innovative
technology; additional electronic connectivity options for hospital and
physician clients; and expanded access to the industry's most extensive network
of medical specialists for physician-to-physician consultation.
"AML's customers and employees will benefit from this transaction," said Timothy
J. Brodnik, Chairman, President and Chief Executive Officer of AML. "Our
customers and employees will have access to the medical and scientific expertise
of the entire Quest Diagnostics laboratory network, including its renowned
Nichols Institute esoteric testing laboratory and research and development
center. Our companies share common values, an essential ingredient for
successfully joining together."
Quest Diagnostics will discuss the transaction during a conference call for
investors today at 5 p.m. Eastern Time. To hear a simulcast of the call over the
Internet or a replay, registered analysts may access StreetEvents at:
http://www.streetevents.com; and all others may access the Quest Diagnostics
website at: http://www.questdiagnostics.com. In addition, a replay of the call
will be available from 6 p.m. on February 7 through 5 p.m. on February 11 to
investors in the U.S. by dialing 800-944-7206. Investors outside the U.S. may
dial 402-220-3450. No password is required for either number.
About Quest Diagnostics
Quest Diagnostics Incorporated is the nation's leading provider of diagnostic
testing, information and services, providing insights that enable physicians,
hospitals, managed care organizations and other healthcare professionals to make
decisions to improve health. The company offers the broadest access to
diagnostic laboratory services through its national network of laboratories and
patient service centers. Quest Diagnostics is the leading provider of esoteric
testing, including gene-based medical testing, and empowers healthcare
organizations and clinicians with state-of-the-art connectivity solutions that
improve practice management. Additional company information can be found on the
Internet at: http://www.questdiagnostics.com.
The statements in this press release that are not historical facts or
information may be forward-looking statements. These forward-looking statements
involve risks and uncertainties that could cause the outcome to be materially
different. Certain of these risks and uncertainties are listed in the Quest
Diagnostics Incorporated 2000 Form 10-K and subsequent filings.
SOURCE Quest Diagnostics Incorporated
CONTACT:
Investors - Cathy Doherty, +1-201-393-5030, or Media - Gary
Samuels, +1-201-393-5700, both of Quest Diagnostics
URL: http://www.questdiagnostics.com
Copyright (C) 2002 PR Newswire. All rights reserved.