Cincinnati-based Laboratory Partners, which filed for bankruptcy protection last fall, may be close to finding a buyer for its business that services the long-term care sector. The company, which operates primarily under the name MedLab, announced in mid-December that it was in negotiations with Florida-based American Health Associates (AHA). Laboratory Partners Chief Executive Officer Bill Brandt indicated a deal was likely to be announced soon. “Although I believe it’s fair to say that negotiations are in a fairly advanced stage, I think it’s also fair to say that the deal is all but certain to happen, and likely will have some type of closing toward the end of January,” Brandt said in an e-mail. Brandt is CEO of Development Specialists Inc., a Chicago-based firm that specializes in corporate workouts and turnarounds. It was retained by Laboratory Partners last year after it began encountering financial issues, and Brandt was placed in the executive suite not long after its top leadership departed last summer. Laboratory Partners had about $32 million in secured and unsecured debt when it filed for bankruptcy protection last Oct. 25. Although the filing was for a Chapter 11 reorganization, Brandt said at the time of the filing that […]
Cincinnati-based Laboratory Partners, which filed for bankruptcy protection last fall, may be close to finding a buyer for its business that services the long-term care sector.
The company, which operates primarily under the name MedLab, announced in mid-December that it was in negotiations with Florida-based American Health Associates (AHA). Laboratory Partners Chief Executive Officer Bill Brandt indicated a deal was likely to be announced soon.
“Although I believe it’s fair to say that negotiations are in a fairly advanced stage, I think it’s also fair to say that the deal is all but certain to happen, and likely will have some type of closing toward the end of January,” Brandt said in an e-mail.
Brandt is CEO of Development Specialists Inc., a Chicago-based firm that specializes in corporate workouts and turnarounds. It was retained by Laboratory Partners last year after it began encountering financial issues, and Brandt was placed in the executive suite not long after its top leadership departed last summer. Laboratory Partners had about $32 million in secured and unsecured debt when it filed for bankruptcy protection last Oct. 25. Although the filing was for a Chapter 11 reorganization, Brandt said at the time of the filing that the intent was to sell off the company’s assets to other labs.
The biggest sticking point to a potential deal is that AHA was not licensed to conduct lab testing in all the states where MedLab does business, according to Brandt. He said this would likely require some transition period of a few months until AHA obtains proper licensure. He would not disclose what states were at issue. MedLab operates in eight states primarily in the Midwest, as well as the District of Columbia. Although AHA’s focus is also on providing lab services to long-term care facilities, a large portion of its business is in the Southeast.
AHA Chief Executive Officer Debbie Martin did not return a phone call seeking comment.
Takeaway: Laboratory Partners’ intent to sell itself off as part of its bankruptcy plan is continuing.
