Carilion Labs, a for-profit affiliate of Roanoke, VA-based Carilion Clinics, will merge with Spectrum Laboratory Network to form one of the nation's largest regional hospital lab companies, the two companies announced today.
The merger, which is expected to close by the end of February, will create a new company serving 37 hospitals and 14,000 physicians in eight states, with more than 2,600 employees and annual revenues above $300 million, the two companies said in a joint media release.
David Weavil, a laboratory industry veteran executive, will be CEO of the new company—the name of which has yet to be announced. The new company will be headquartered in Roanoke, and Greensboro, NC, where Spectrum is located.
Carilion Clinic will own 33% of the new company. Carilion President/CEO Edward G. Murphy, MD, and two other Carilion appointees will sit on the board.
"A new company that combines the strengths and shared values of Carilion and Spectrum with a focus on hospital laboratory services will significantly improve services to our customers and their patients, and provides a strong platform for further expansion within the region and across the nation," Murphy said.
Novant Health, a minority owner in Carilion Labs, will remain an equity owner in the new company and will hold a seat on the board.
The pending merger, subject to FTC approval, follows the recent purchase of Spectrum by Welsh, Carson, Anderson and Stowe, a private equity firm.