Hooper Holmes and Clinical Reference Laboratory, Inc. Launch Strategic Alliance
Heritage Labs and Services Business Units Sold to CRL for $3.5 million
Hooper Holmes Joins CRL's Preferred Provider Network for Wellness Programs
Strategic Alliance Launches as CRL Provides Laboratory Testing Services
OLATHE, Kan.--(BUSINESS WIRE)--Hooper Holmes (NYSE MKT:HH) today announced the closing of the transaction, under which Clinical Reference Laboratory, Inc., ("CRL") has acquired certain assets comprising the businesses of Heritage Labs and Hooper Holmes Services for $3.5 million, after certain inventory-related price adjustments.
“This begins an exciting new chapter for Hooper as a stand-alone Health & Wellness company. This is an important milestone in executing our long-term strategy to accelerate growth within the health and wellness market.”
CRL is now Hooper Holmes' exclusive provider of laboratory testing services, and Hooper has become a member of CRL’s preferred provider network for wellness programs. The strategic alliance between the two companies was announced on April 16, 2014.
Commenting on the sale of the Company's remaining life insurance services operations to CRL, Henry E. Dubois, President and CEO of Hooper Holmes, stated: "This begins an exciting new chapter for Hooper as a stand-alone Health & Wellness company. This is an important milestone in executing our long-term strategy to accelerate growth within the health and wellness market."
Mr. Dubois continued, "Our strategic alliance with CRL enables us to focus on serving customers, while operating more efficiently based on customer needs. With access to CRL's wide range of testing capabilities, we can now offer customers flexibility in acquiring more data about participant populations. It also allows us to increase focus on Health & Wellness innovation, and to develop more efficient, affordable, best-in-class biometric screening solutions.”
In connection with the closing, the two parties agreed that certain Heritage Labs assets would be transferred to CRL following a brief period, in order to facilitate an orderly transition of testing services. As such, $250,000 of the $3.5 million purchase price will be placed in escrow, to be released to Hooper Holmes at the time of the transfer, which is expected to occur on or before October 31, 2014.
About Hooper Holmes
Hooper Holmes, Inc. mobilizes a national network of health professionals to provide on-site health screenings, laboratory testing, risk assessment and sample collection services to wellness and disease management companies, insurance companies, employers, government organizations and academic institutions.
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 the timing for completion of and our ability to realize the expected benefits from the transaction with Clinical Reference Laboratory; 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. 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.