NEW YORK – Quest Diagnostics said on Tuesday that it is acquiring its joint venture partner interests in Indiana-based Mid America Clinical Laboratories (MACL) and will operate the business by itself.
The largest independent clinical lab in Indiana, MACL was formed two decades ago as a joint venture between Quest, the Ascension St. Vincent hospital system, and Community Health Network. With the acquisition, Secaucus, New Jersey-based Quest will take full ownership of MACL's Indianapolis-based lab and around 50 patient service centers across Indiana.
Under the all-cash equity deal, which Quest expects to complete in Q3 2020, the company will also enter a long-term service agreement to provide hospital lab services to around 30 hospital labs owned and operated by Ascension St. Vincent and Community Health Network.
"This transaction delivers on our accelerate growth and operational excellence strategies, which focus on strategically aligned, accretive acquisitions, while bolstering our professional lab services," Steve Rusckowski, Quest's chairman, president, and CEO, said in a statement. "Health systems increasingly turn to Quest Diagnostics to optimize their lab strategies. We are pleased to take this step forward to deliver actionable diagnostic insights to more patients and providers in Indiana."
Financial terms of the agreement were not disclosed.