LYNDHURST, N.J., and LENEXA, Kan., Oct 27, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Quest
Diagnostics Incorporated (NYSE: DGX) and LabOne, Inc. (Nasdaq: LABS) announced
that LabOne shareholders approved the acquisition of LabOne by Quest
Diagnostics in a vote held at a special meeting today.
The shareholder vote followed regulatory clearance of the transaction in
mid-October. The transaction is expected to be completed during the first week
of November.
"We are excited to join together with LabOne very shortly," said Surya N.
Mohapatra, Ph.D., Chairman and Chief Executive Officer of Quest Diagnostics.
"Combining with LabOne will further solidify our leadership position in
diagnostic testing and strengthen our drugs of abuse testing business. In
addition, it will establish us as the leader in a testing-related business,
providing health screening and risk assessment services to the life insurance
industry."
"LabOne shareholders clearly agree that this is an attractive transaction
that will deliver significant value," said W. Thomas Grant II, Chairman and
Chief Executive Officer of LabOne. "LabOne customers will benefit from access
to the industry's leading distribution network, and innovative science and
technology, including Quest Diagnostics Nichols Institute and its advanced
healthcare IT solutions."
Quest Diagnostics expects the transaction to generate annual synergies of
approximately $30 million upon completion of the integration, which is
expected to occur within two years of closing. The acquisition is not expected
to have a material impact on Quest Diagnostics' 2005 earnings per share,
excluding anticipated charges associated with the transaction. In 2006, the
transaction is expected to be modestly accretive to earnings.
About LabOne
LabOne provides health screening and risk assessment services to life
insurance companies, as well as clinical diagnostic testing services to
healthcare providers and drugs-of-abuse testing to employers. LabOne, which is
headquartered in Lenexa, Kansas, reported revenues of $468 million for the
year ended December 31, 2004, and has 3,100 employees. LabOne operates major
laboratories in Lenexa, Kansas, and Cincinnati, Ohio, as well as a state-of-
the-art call center in Lee's Summit, Missouri, and provides paramedical
examination services throughout the United States and Canada.
About Quest Diagnostics
Quest Diagnostics is the leading provider of diagnostic testing,
information and services that patients and doctors need to make better
healthcare decisions. The company offers the broadest access to diagnostic
testing services through its national network of laboratories and patient
service centers, and provides interpretive consultation through its extensive
medical and scientific staff. Quest Diagnostics is a pioneer in developing
innovative new diagnostic tests and advanced healthcare information technology
solutions that help improve patient care. Additional company information is
available at: http://www.questdiagnostics.com.
The statements in this press release which are not historical facts or
information may be forward-looking statements. These forward-looking
statements involve risks and uncertainties that could cause actual results and
outcomes to be materially different. Certain of these risks and uncertainties
may include, but are not limited to, competitive environment, changes in
government regulations, changing relationships with customers, payers,
suppliers and strategic partners and other factors described in the Quest
Diagnostics Incorporated or LabOne, Inc. 2004 Forms 10-K and subsequent
filings.
SOURCE Quest Diagnostics Incorporated; LabOne, Inc.
Laure Park, Investors
+1-201-393-5030
or Gary Samuels
Media
+1-201-393-5700,
both
for Quest Diagnostics;
or For LabOne:
John McCarty,
+1-913-577-1294,
both investors
and media