Unilab Acquires Medical Laboratory

Unilab Corp., a provider of clinical laboratory testing services in California, has completed the previously announced acquisition of Ventura-based Medical Laboratory Network.

The purchase was valued at $32.5 million in cash and stock. In addition, sellers of privately held Medical Laboratory received warrants to acquire 200,000 shares of Tarzana-based Unilab’s common stock.

Medical Laboratory has annual revenues of about $25 million. The firm’s testing units will become part of a Unilab network whose facilities are centered in Los Angeles, San Jose and Sacramento.

Unilab paid $31 million in cash plus $1.5 million in Unilab stock. The Unilab warrants that are part of the deal are exercisable at $6 per share.

Partly to finance the acquisition, Unilab also arranged a $125-million line of credit with a group of lenders. In addition to paying for the purchase of the Ventura company, the borrowings will refinance existing debt, and provide for future working capital and other possible acquisitions, Unilab said.