Laboratory Corp. To Buy Chiltern In $1.2 Billion Deal

Laboratory Corp. of America Holdings announced Monday a deal to buy contract research organization Chiltern in a deal valued at $1.2 billion in cash. Chiltern is expected to have 2017 revenue of about $550 million and backlog of $1 billion. Laboratory Corp. expects to fund the deal, which is expected to close in the fourth quarter, with a combination of bank financing and bonds. Laboratory Corp.'s stock, which is still inactive in premarket trade, has run up 25% year to date, while the S&P 500 has gained 10%.