Eurofins Scientific has agreed to acquire Covance Food Solutions, the food testing and consulting business of global life sciences company LabCorp, for $670m.
The global bioanalytical testing firm said that the acquisition will expand its footprint across North America, the UK and Asia while expanding its food products testing portfolio.
Headquartered in Princeton in the US state of New Jersey, Covance Food Solutions offers product integrity, product safety and consulting solutions for end-user segments across the entire food supply chain.
The company provides its clients with routine and specialized laboratory testing and consulting services focused on product safety, quality and compliance with targeted internal and external standards for already launched and in-development food, beverage and supplement products.
The company, which earned around $150m in 2017, has an integrated network of 12 facilities in the US, UK and Singapore, and a workforce of 850 people.
Eurofins CEO Gilles Martin said: “We are extremely pleased to welcome LabCorp’s Covance Food Solutions and its talented teams to the Eurofins Group. Its competencies, reputation for scientific excellence and complementary geographic footprint, client focus and service offerings further strengthen Eurofins’ global offering in the very competitive food testing market.”
Covance Food Solutions came under the ownership of LabCorp following the latter’s $6.2bn acquisition of Covance, a contract research organization, in 2015.
LabCorp CEO David King said: “Eurofins has an outstanding reputation in the food quality and development business, which will be enhanced with the addition of LabCorp’s Covance Food Solutions business, offering increased opportunities for its employees and more comprehensive services for customers.
“The sale of Covance Food Solutions to Eurofins allows LabCorp to focus on our core mission of improving health and improving lives, and at the same time better positions Covance Food Solutions to serve the global food supply industry.”
The sale of Covance Food Solutions is anticipated to be completed in the third quarter of this year, based on meeting customary closing conditions and receipt of regulatory approvals.
