Quest Diagnostics Selling HemoCue Business for $300 Million

By Dan Carroll – Feb 25, 2013 at 6:25PM

NYSE: DGX

Quest Diagnostics

Market Cap

$15B

Today's Change

(0.62%) $0.85

Current Price

$137.55

Price as of April 24, 2024, 4:00 p.m. ET

Company using the $300 million sale to help finance stock buyback program

Medical company Quest Diagnostics (DGX 0.62%) announced in a press statement early Monday that it has agreed to sell its HemoCue diagnostics business, a division that makes and markets hemoglobin, glucose, and other testing products, to Radiometer Medical.

Quest expects the sale -- for $300 million along with adjustments for cash balances -- to be completed in March. The company plans to use the money to contribute to its stock-buyback program.

Quest CEO and President Steve Ruscowski elaborated on the sale in his company's release, saying, "The HemoCue divestiture, along with our sale of OralDNA in December 2012, demonstrates our commitment to refocus our business on diagnostic information services."

Quest first announced the sale in January.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Quest Diagnostics. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.