Hooper Holmes and Clinical Reference Laboratory, Inc. Launch Strategic Alliance
September 02 2014 - 7:15AM
Business Wire
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
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.
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.
Hooper HolmesHenry E. Dubois, 913-764-1045President and
CEOorInvestors:S.M. Berger & CompanyAndrew Berger,
216-464-6400