Hooper Holmes and Clinical Reference Laboratory, Inc. Announce Strategic Alliance
April 16 2014 - 7:45AM
Business Wire
CRL to Provide Laboratory Testing Services to
Hooper Holmes
Hooper Holmes to Become a Member of CRL's
Preferred Provider Network for Wellness Programs
CRL to Acquire Hooper Holmes’ Heritage Labs and
Services Business Units for $3.7 million
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 will come 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.
Hooper HolmesHenry E. Dubois, President and CEO,
913-764-1045orInvestors:S.M. Berger & CompanyAndrew Berger,
216-464-6400