[September 02, 2014] |
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Hooper Holmes and Clinical Reference Laboratory, Inc. Launch Strategic Alliance
OLATHE, Kan. --(Business Wire)--
Hooper Holmes (NYSE MKT:HH) today announced the closing of the
transaction, under which Clinical Reference Laboratory, Inc., ("CRL")
has acquired certain assets comprising the businesses of Heritage Labs
and Hooper Holmes Services for $3.5 million, after certain
inventory-related price adjustments.
CRL is now Hooper Holmes' exclusive provider of laboratory testing
services, and Hooper has become a member of CRL's preferred provider
network for wellness programs. The strategic alliance between the two
companies was announced on April 16, 2014.
Commenting on the sale of the Company's remaining life insurance
services operations to CRL, Henry E. Dubois, President and CEO of Hooper
Holmes, stated: "This begins an exciting new chapter for Hooper as a
stand-alone Health & Wellness company. This is an important milestone in
executing our long-term strategy to accelerate growth within the health
and wellness market."
Mr. Dubois continued, "Our strategic alliance with CRL enables us to
focus on serving customers, while operating more efficiently based on
customer needs. With access to CRL's wide range of testing capabilities,
we can now offer customers flexibility in acquiring more data about
participant populations. It also allows us to increase focus on Health &
Wellness innovation, and to develop more efficient, affordable,
best-in-class biometric screening solutions."
In connection with the closing, thetwo parties agreed that certain
Heritage Labs assets would be transferred to CRL following a brief
period, in order to facilitate an orderly transition of testing
services. As such, $250,000 of the $3.5 million purchase price will be
placed in escrow, to be released to Hooper Holmes at the time of the
transfer, which is expected to occur on or before October 31, 2014.
About Hooper Holmes
Hooper Holmes, Inc. mobilizes a national network of health professionals
to provide on-site health screenings, laboratory testing, risk
assessment and sample collection services to wellness and disease
management companies, insurance companies, employers, government
organizations and academic institutions.
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 the timing for
completion of and our ability to realize the expected benefits from the
transaction with Clinical Reference Laboratory; 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. 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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