Hooper Holmes and Clinical Reference Laboratory, Inc. Announce Strategic
CRL to Provide Laboratory Testing Services to Hooper Holmes
Hooper Holmes to Become a Member of CRL's Preferred Provider Network for
CRL to Acquire Hooper Holmes’ Heritage Labs and Services Business Units for
OLATHE, Kan. -- April 16, 2014
Hooper Holmes (NYSE MKT:HH) and Clinical Reference Laboratory, Inc. (CRL)
today announced that they have entered into a Strategic Alliance Agreement
under which CRL will become Hooper Holmes' exclusive provider of laboratory
testing services and Hooper Holmes will become a member of CRL’s preferred
provider network for wellness programs.
Under the agreement, Hooper Holmes will also sell the assets and businesses
comprising Heritage Labs International, LLC. and Hooper Holmes Services to CRL
for $3.7 million. The transaction is expected to close in the late second
quarter or early third quarter of 2014.
This transaction will provide Hooper Holmes with additional capital to invest
as it focuses on growth supporting Health & Wellness programs, clinical
research and government studies. As part of the strategic alliance agreement,
Hooper Holmes will also gain access to CRL's wide range of laboratory testing
capabilities, subject to defined standards of performance.
Hooper Holmes will retain its sample kit assembly and supply chain fulfillment
capabilities, which continue to support Health & Wellness operations and other
Henry Dubois, President and CEO of Hooper Holmes commented, "We believe our
Strategic Alliance with CRL will accelerate Hooper's growth in health care
services and provide improved results for our shareholders. Laboratory testing
is an important and growing component of Wellness programs and CRL is an
industry leader, performing more than 100 million tests annually. We are
excited to bring CRL's vast range of lab testing services to our Health &
Mr. Dubois continued, “Hooper Holmes' involvement in the life insurance sector
will come to an end when this transaction closes, concluding a transition that
began with the sale of Portamedic in 2013. Our Company will be purely focused
on Health & Wellness and our alliance with CRL will allow us to offer
state-of-the-art testing capabilities to our customers."
Tim Sotos, Chairman of the Board and CEO of CRL commented, "CRL is delighted
to partner with Hooper Holmes on laboratory testing and to welcome Hooper as a
member of CRL’s preferred provider network for wellness programs. We are
pleased to expand the range of services we offer to the life insurance
industry. This strategic alliance is a natural extension of our vision to be
the undisputed leader in the markets we serve."
Cantor Fitzgerald & Co. is acting as the financial advisor to Hooper Holmes.
About Hooper Holmes
Hooper Holmes has three segments. Hooper Holmes Health & Wellness performs
risk assessment and risk management services including biometric screenings,
health risk assessments and onsite wellness coaching for wellness companies,
disease management organizations, clinical research organizations and health
plans. Heritage Labs tests millions of samples annually and helps insurers
better applying the predictive powers of today’s tests. Hooper Holmes Services
provides integrated data collection, tele-interviewing and underwriting
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 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 and rate of life insurance
application activity. 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
Henry E. Dubois, President and CEO, 913-764-1045
S.M. Berger & Company
Andrew Berger, 216-464-6400
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