Fresenius Medical Care divests Shiel Medical Laboratory to Quest Diagnostics
Fresenius Medical Care announced the divestment of the business of Shiel Medical Laboratory, Inc. to Quest Diagnostics, Inc. Shiel provides comprehensive non-dialysis laboratory services in the New York-New Jersey metropolitan area.
The decision to divest Shiel is aligned with Fresenius Medical Care’s goal to further optimize the Company’s Care Coordination portfolio. Fresenius Medical Care’s dialysis-related laboratory services business, Spectra Labs, is not affected by the divestiture.
The divestment is expected to generate a modest book gain for Fresenius Medical Care. Closing of the transaction is subject to regulatory approvals and anticipated in the fourth quarter of 2017.
“The sale of Shiel Medical Laboratory will optimize the growth profile of our portfolio of Care Coordination activities in the U.S.,” said Rice Powell, Chief Executive Officer of Fresenius Medical Care. “Based on the business’ development relative to our original expectations we’re keen to focus on areas offering superior growth and benefits for our core activities. With this transaction, Shiel’s customers will have access to even more diagnostic expertise. Ensuring a smooth transition will be a priority.”
“By joining forces with Shiel, physicians and patients in the New York-New Jersey region will have broader access to Quest’s diagnostic insights and innovations,” said Steve Rusckowski, Quest Diagnostics Chairman, President and CEO. “The acquisition will also deliver on Quest's strategy to accelerate growth and drive operational excellence through strategically aligned, accretive acquisitions."
Fresenius Medical Care and Quest will also collaborate on identifying patients with early-stage chronic kidney disease, based on Quest’s laboratory data analytics, who may benefit from treatment to slow progression to end-stage renal disease (ESRD).
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