Kansas-based Clinical Reference Lab (CRL) and Hooper Holmes Inc. have agreed to swap some assets and services that will allow the latter to focus on workplace wellness initiatives. CRL has come to terms to acquire Hooper Holmes’s Heritage Labs International and its Hooper Holmes Services division for $3.7 million. The deal is expected to close by the third quarter of this year. Heritage Labs focuses primarily on urine-based kit testing of HIV, cardiovascular, and other health disorders, primarily for due diligence work performed by life insurers screening policy applicants prior to writing coverage. Its most memorable feature may be its mascot, Heritage the Lab, a black Labrador dog who receives far more description on the lab Web site than the tests the company performs. The annual volume of tests performed by Heritage Labs was not available. The transaction appears to be a good fit for CRL, which performs more than 100 million tests annually and has a sizable business performing testing for the life insurance sector. Heritage will use the cash infusion from the sale to focus more on growing its health and wellness and clinical research. In turn, CRL will perform all of Heritage’s lab testing after the sale […]
Kansas-based Clinical Reference Lab (CRL) and Hooper Holmes Inc. have agreed to swap some assets and services that will allow the latter to focus on workplace wellness initiatives.
CRL has come to terms to acquire Hooper Holmes’s Heritage Labs International and its Hooper Holmes Services division for $3.7 million. The deal is expected to close by the third quarter of this year.
Heritage Labs focuses primarily on urine-based kit testing of HIV, cardiovascular, and other health disorders, primarily for due diligence work performed by life insurers screening policy applicants prior to writing coverage. Its most memorable feature may be its mascot, Heritage the Lab, a black Labrador dog who receives far more description on the lab Web site than the tests the company performs. The annual volume of tests performed by Heritage Labs was not available.
The transaction appears to be a good fit for CRL, which performs more than 100 million tests annually and has a sizable business performing testing for the life insurance sector.
Heritage will use the cash infusion from the sale to focus more on growing its health and wellness and clinical research. In turn, CRL will perform all of Heritage’s lab testing after the sale is completed. It will also include Hooper Holmes in its provider network for wellness programs.
Health and wellness programs for medium-sized and large employers have been growing rapidly in recent years as those companies struggle to keep health care costs down and manage employees who may be struggling with their weight and other lifestyle issues. Quest Diagnostics indicated how important the business is to the lab sector after it announced the acquisition of Michigan-based corporate wellness giant Summit Health.
“Laboratory testing is an important and growing component of wellness programs and CRL is an industry leader,” said Hooper Holmes Chief Executive Officer Henry Dubois in a statement. He did not respond to a phone call and e-mail requesting further comment.
Takeaway: Labs both large and small are taking aim at the wellness sector as a way to grow their business.
