Roche Biomed And National Health Labs To Merge

Roche subsidiary Hoffmann-La Roche Inc and National Health Laboratories Holdings Inc in the USA have announced they have signed an agreement to merge their respective clinical laboratory organizations. The result will be the world's largest clinical laboratory concern.

The combination of NHL and Roche's Bio-medical Laboratories will create a new company with estimated annual revenues in excess of $1.7 billion. James Powell, current president of RBL, will lead the new company as president and chief executive, while James Maher, chief executive of NHL, will serve as chairman of the board of directors, on which Roche will have three members.

Under the terms of the merger, which Roche Diagnostics Division chief Jean-Luc Belingard says "will result in the creation of an industry leader," NHL's shareholders will receive a 50.1% interest in the company and approximately $475 million in cash. Each NHL share will be exchanged for 0.72 shares of the new company's stock and a cash payment of $5.60.