Genzyme to Sell Genetics Testing Unit

Genzyme reached an agreement to sell its genetic testing business to LabCorp for $925 million in cash.
Author:
Publish date:

Updated from 6:32 a.m. EDT

CAMBRIDGE, Mass (

TheStreet

) --

Genzyme

(GENZ)

reached an agreement to sell its genetic testing business to

LabCorp

(LH) - Get Report

for $925 million in cash.

LabCorp will buy Genzyme Genetics in its entirety, including all testing services, technology, intellectual property rights, and its nine testing laboratories. LabCorp will offer the Genzyme unit's 1,900 workers jobs after the deal closes.

It's expected the acquisition will close before the end of 2010.

Genzyme Genetics had revenue of $371 million in 2009.

Genzyme said in May that it would seek "strategic alternatives" for three units as part of a five-part plan to increase shareholder value.

The company said plans to divest the two other Genzyme business units, Diagnostic Products and Pharmaceutical intermediates, are on track. Proceeds from these transactions may be used to finance the second half of the company's $2 billion stock buyback plan, to be completed by May 2011.

Genzyme is fending off an $18.5 billion buyout offer from French pharmaceutical company

Sanofi-Aventis

(SNY) - Get Report

.

-- Written by Joseph Woelfel

>To contact the writer of this article, click here:

Joseph Woelfel

>To submit a news tip, send an email to:

tips@thestreet.com

.