BURLINGTON – Global life sciences firm LabCorp is selling its Covance Food Solutions Group to Eurofins Scientific in a deal valued at $670 million in cash.
LabCorp, which is based in Burlington with a growing preesence in the Triangle, acquired the food group as part of its deal to acquire Covance for some $6 billion in 2015.
In 2017, Covance Food Solutions generated $150 million revenue of some $150 million, according to LabCorp.
The deal was announced early Monday.
“Covance Food Solutions is a great business and has benefitted substantially from its ownership by Covance and then LabCorp,” said David King, chairman and chief executive officer of LabCorp, in a statement.
“Over the three years LabCorp has owned Covance, it has become clear that the greatest opportunities for us to create lasting value come from the core lab business, the Contract Research Organization, and the enterprise-wide combination that is beyond lab and beyond CRO. The sale of Covance Food Solutions to Eurofins allows us 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.”
Covance Food Solutions provides product design and product integrity services across the food supply chain, including dietary supplements, beverage and agriculture. It has facilities in the US. the United Kingdom and Singapore.
Eurofins focuses on food testing and development services.
The deal is expected to close later this year.
