Quest Diagnostics expands into Canada with nearly $1.35B LifeLabs deal

A sign is seen outside a LifeLabs location in North Vancouver B.C., on Friday, October 22, 2021. (Darryl Dyck / The Canadian Press)

Quest Diagnostics said on Wednesday it would acquire Canada-based LifeLabs from pension plan owner OMERS for about $1.35 billion, including net debt.

LifeLabs, which provides community laboratory tests, would retain its brand, Canadian headquarters and management after the acquisition is closed.

The U.S. laboratory operator will acquire 100 per cent of the equity of LifeLabs and expects to fund the acquisition through cash on hand and debt. Quest expects the deal to generate roughly US$710 million in annual revenues.

The transaction is expected to be completed by the end of the year.

(Reporting by Sneha S K in Bengaluru; Editing by Shilpi Majumdar)