Unilab Expansion Seen in Competitor Buyout

Unilab Corp., a Tarzana-based provider of lab testing services, said it has agreed to acquire Medical Laboratory Network, a small competing company based in Ventura.

Unilab will pay $31 million in cash and $1.5 million in stock for Medical Laboratory Network, which had sales of $25 million last year. It will also issue warrants that will allow Medical Laboratory Network to acquire 200,000 additional shares of Unilab stock for $6 per share.

Andrew Baker, chairman of Unilab, said he expected the purchase to solidify the company’s Southern California presence by allowing it to expand into Ventura and Santa Barbara counties.