[April 16, 2014] |
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Hooper Holmes and Clinical Reference Laboratory, Inc. Announce Strategic Alliance
OLATHE, Kan. --(Business Wire)--
Hooper Holmes (NYSE MKT:HH) and Clinical Reference Laboratory, Inc.
(CRL) today announced that they have entered into a Strategic Alliance
Agreement under which CRL will become Hooper Holmes' exclusive provider
of laboratory testing services and Hooper Holmes will become a member of
CRL's preferred provider network for wellness programs.
Under the agreement, Hooper Holmes will also sell the assets and
businesses comprising Heritage Labs International, LLC. and Hooper
Holmes Services to CRL for $3.7 million. The transaction is expected to
close in the late second quarter or early third quarter of 2014.
This transaction will provide Hooper Holmes with additional capital to
invest as it focuses on growth supporting Health & Wellness programs,
clinical research and government studies. As part of the strategic
alliance agreement, Hooper Holmes will also gain access to CRL's wide
range of laboratory testing capabilities, subject to defined standards
of performance.
Hooper Holmes will retain its sample kit assembly and supply chain
fulfillment capabilities, which continue to support Health & Wellness
operations and other customers.
Henry Dubois, President and CEO of Hooper Holmes commented, "We believe
our Strategic Alliance with CRL will accelerate Hooper's growth in
health care services and provide improved results for our shareholders.
Laboratory testing is an important and growing component of Wellness
programs and CRL is an industry leader, performing more than 100 million
tests annually. We are excited to bring CRL's vast range of lab testing
services to our Health & Wellness customers."
Mr. Dubois continued, "Hooper Holmes' involvement in the life insurance
sector willcome to an end when this transaction closes, concluding a
transition that began with the sale of Portamedic in 2013. Our Company
will be purely focused on Health & Wellness and our alliance with CRL
will allow us to offer state-of-the-art testing capabilities to our
customers."
Tim Sotos, Chairman of the Board and CEO of CRL commented, "CRL is
delighted to partner with Hooper Holmes on laboratory testing and to
welcome Hooper as a member of CRL's preferred provider network for
wellness programs. We are pleased to expand the range of services we
offer to the life insurance industry. This strategic alliance is a
natural extension of our vision to be the undisputed leader in the
markets we serve."
Cantor Fitzgerald & Co. is acting as the financial advisor to Hooper
Holmes.
About Hooper Holmes
Hooper Holmes has three segments. Hooper Holmes Health & Wellness
performs risk assessment and risk management services including
biometric screenings, health risk assessments and onsite wellness
coaching for wellness companies, disease management organizations,
clinical research organizations and health plans. Heritage Labs tests
millions of samples annually and helps insurers better applying the
predictive powers of today's tests. Hooper Holmes Services provides
integrated data collection, tele-interviewing and underwriting services.
About Clinical Reference Laboratory, Inc.
Clinical Reference Laboratory, Inc. is a privately held clinical testing
laboratory offering leading edge services in the areas of Insurance Risk
Assessment, Drugs of Abuse Testing, Wellness, Molecular Diagnostics and
Global Clinical Trials. CRL serves clients across the globe in a range
of industries, including finance, healthcare, pharmaceutical, energy,
transportation and retail. CRL performs hundreds of thousands of tests
every day from its dedicated facilities in North America and Europe,
with over 275,000 square feet of laboratories, logistics and office
space.
This press release contains "forward-looking" statements, as such
term is defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on the Company's current
expectations and beliefs and are subject to a number of risks,
uncertainties and assumptions. Among the important factors that
could cause actual results to differ materially from those expressed in,
or implied by, these forward-looking statements are our ability to
successfully implement our business strategy; uncertainty as to our
working capital requirements over the next 12 to 24 months; our ability
to maintain compliance with the financial covenant in our credit
facility; our expectations regarding our operating cash flows; and the
rate of growth in the Health and Wellness market and rate of life
insurance application activity. Additional information about these and
other factors that could affect the Company's business is set forth in
the Company's annual report on Form 10-K for the year ended December 31,
2013, filed with the Securities and Exchange Commission on March 31,
2014. The Company undertakes no obligation to update or release
any revisions to these forward-looking statements to reflect events or
circumstances after the date of this press release to reflect the
occurrence of unanticipated events, except as required by law.
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