Quest Diagnostics is acquiring one of the country’s oldest clinical laboratories.
Shiel is a clinical laboratory provider serving the New York-New Jersey metropolitan area.
The transaction is structured as a purchase of assets, and is expected to be done by this year’s fourth quarter.
Financial terms were not disclosed.
“By joining forces with Shiel, physicians and patients in the New York-New Jersey region will have broader access to Quest’s diagnostic insights and innovations,” said Quest Chairman, CEO and President Steve Rusckowski. “The acquisition will also deliver on Quest’s strategy to accelerate growth and drive operational excellence through strategically aligned, accretive acquisitions.”
Selling Shiel “will optimize the growth profile” of Fresenius, said its CEO, Rice Powell.
“Based on the business’s development relative to our original expectations we’re keen to focus on areas offering superior growth and benefits for our core activities,” Powell said. “With this transaction, Shiel’s customers will have access to even more diagnostic expertise. Ensuring a smooth transition will be a priority.”
Once completed, the acquisition is expected to expand the network of Quest patient service centers in the region. Providers will also have direct access to Quest’s broader menu of services.
Services currently provided by Shiel’s laboratories in Rockleigh and Brooklyn will transition to Quest’s flagship clinical laboratory in Teterboro.
Quest Diagnostics and Fresenius Medical Care will also collaborate on identifying patients with early-stage chronic kidney disease, based on Quest’s laboratory data analytics, who may benefit from treatment to slow progression to end-stage renal disease.