Quest Diagnostics completes acquisition of AmeriPath in deal valued at about $2 billion

By Lisa Kerner

Charlotte, N.C., May 31 - Quest Diagnostics Inc. completed its acquisition of AmeriPath, Inc.

"This acquisition creates the world's premier cancer diagnostics company focused on dermatopathology, anatomic pathology and molecular diagnostics," Quest chairman and chief executive officer Surya N. Mohapatra said in a company news release. "This combination will accelerate growth, while providing compelling benefits for patients, physicians, hospitals and payers."

The companies announced a definitive agreement on April 16 in which Quest would acquire AmeriPath in an all-cash transaction valued at about $2 billion, including some $770 million in debt.

Quest planed to use proceeds from a new $1 billion one-year bridge loan and a new five-year $1.5 billion term loan, both underwritten by Morgan Stanley, to finance the transaction, to refinance AmeriPath's existing debt and to refinance the debt from the HemoCue acquisition completed earlier this year.

AmeriPath is a diagnostic test company based in Palm Beach Gardens, Fla., that is controlled by equity investment firm Welsh, Carson, Anderson and Stowe.

Quest Diagnostics, located in Lyndhurst, N.J., provide diagnostic testing, information and services.

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