Labcorp Completes Spin-off of Fortrea
- Labcorp completed the spin-off of Fortrea, which could unlock shareholder value.
- Fortrea will trade on NASDAQ under the symbol 'FTRE'.
- Labcorp received a cash distribution of approximately $1.6 billion from Fortrea.
- Labcorp plans to use the proceeds for a $1.0 billion accelerated share repurchase program and paying down $300 million of debt.
- Labcorp's stockholders received one share of Fortrea common stock for every share of Labcorp common stock they held.
- The spin-off has been structured to qualify as a tax-free distribution for U.S. federal income tax purposes.
- None.
"I want to thank our teams for their tireless work in creating two strong, independent companies through the Fortrea spin," said Adam Schechter, chairman and chief executive officer. "The transaction is intended to better meet customer needs, enable appropriate value-creating investments and unlock shareholder value. Moving forward, Labcorp is well positioned to deliver on our mission to improve health and improve lives."
Upon closing, Fortrea made a cash distribution to Labcorp of approximately
The spin-off distribution was completed at 11:59 p.m. on Friday, June 30, 2023, to stockholders of record as of the close of business on Tuesday, June 20, 2023. Each of Labcorp's stockholders received one share of Fortrea common stock for every share of Labcorp common stock they held as of the record date.
No action or payment was required by Labcorp's stockholders to receive shares of the newly formed Fortrea. Stockholders who held Labcorp's common stock as of the record date will receive a book-entry account statement reflecting their ownership of the new Fortrea shares or have their brokerage account credited with the new Fortrea shares.
The spin-off has been structured to qualify as a tax-free distribution to Labcorp's stockholders and the company for
Goldman Sachs & Co. LLC, Barclays and Evercore are serving as Labcorp's financial advisors, and Jones Day and Hogan Lovells are serving as legal counsel.
About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's more than 60,000 employees serve clients in over 100 countries, worked on over
Cautionary Statement Regarding Forward-Looking Statements
Some of the statements in this press release, particularly those relating to the future results of the business and use of proceeds from the cash distribution from Fortrea, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Actual results could differ materially from expectations expressed or implied in the forward-looking statements if one or more of the underlying assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from such expectations are detailed in Labcorp's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, including in each case under the heading Risk Factors, and in Labcorp's other filings with the SEC. These forward-looking statements are based on management's current expectations and are subject to certain risks, uncertainty and changes in circumstances, including with respect to challenges in implementation of the ongoing transitional and commercial arrangements associated with the spin-off and the achievement, or timing of achievement, of the anticipated benefits of the transaction. Labcorp does not undertake any responsibility to update these statements, and these statements speak only as of the date of this press release.
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SOURCE Labcorp
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