The markets generally hold the national reference labs in high esteem based on their recurring financial performance. LabCorp may be the target for a huge leveraged buyout to take it private (see: LabCorp target of massive private equity buyout). Below are the early details and speculation:
A private equity consortium is aiming to scoop-up lab-testing company, Laboratory Corporation of America Holdings in a huge leveraged buyout and take it private, Mergermarket reported....[It's said that] TPG Capital and Bain Capital were among the few private equity firms that have the wherewithal to join hands to make a run at the lab-testing company which has a market capitalization of $8.1 billion. Other potential players who may become involved in the deal are Blackstone Group, Kohlberg Kravis Roberts, and Madison Dearborn....The company's sheer size would make a leveraged buyout a tall order and equity financing alone could make a buyout difficult as an equity check of $3 billion to $4 billion is expected for the deal....BofA Merrill Lynch is heading efforts to raise capital for the buyout and might partner with other banks to underwrite deal, the site said.