$260-Million Deal to Broaden Firm’s Position in Field : Corning Will Buy International Clinical Labs

Corning Glass Works, whose products range from Steuben crystal to dental ceramic, said Tuesday that it signed a definitive agreement to acquire International Clinical Laboratories for about $260 million.

International Clinical, whose 231 facilities perform routine and specialized medical testing of samples submitted by physicians and hospitals nationwide, revealed Monday that it was in talks about being acquired at that price but did not name the suitor.

Corning, with revenue of $1.54 billion for the first nine months of 1987, said the acquisition would broaden its position in laboratory services by improving the service capability of its MetPath Inc. clinical testing laboratory subsidiary.

In 1986, 25% of Corning’s revenue came from its health and science segment, which was primarily related to general laboratory sciences and products for laboratories. These included glass lenses for prescription glasses, dental ceramics and a line of plastic laboratory equipment.

Corning also has a consumer products segment, which makes such products as housewares, cooking dishes and sunglasses; an electronics segment, which produces items ranging from television screens to satellite lenses, and a specialty materials division, which makes building insulation, auto headlights and glass for use in watches, calculators and computers.

Corning said Tuesday that it will start a tender offer for all International Clinical shares at $26 each as soon as possible, with the bid conditioned on receipt of a majority of International Clinical shares.

Corning said that after expiration of the tender, expected in 20 business days, each remaining share would be acquired in a merger at the same price.

Corning said the tender and merger would be subject to expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Corning said the acquisition would mildly dilute its per-share earnings in 1988. But by 1989, International Clinical should be making a “solid contribution to earnings.”

International Clinical had sales of $205.5 million and profit of $4.8 million in the year ended Aug. 31.