The Cambridge, Massachusetts, biotech firm had put the
genetic testing business up for sale - along with two other units - in May
under a plan to increase shareholder value.
The deal gives LabCorp access to all of the division's
testing services, technology, intellectual property rights and its nine testing
laboratories.
"The completion of this sale allows us to focus our
resources on core growth areas and create stronger returns on invested
capital," Genzyme Chairman and CEO Henri A.
Termeer said in a statement.
French pharmaceutical company Sanofi-Aventis has been
offering to buy Genzyme Corp. for $18.5 billion but has been rebuffed so far.
Genzyme, which on Friday said it was going to announce
some job cuts this week, is still on track with plans to sell the remaining two
units, Diagnostic Products and Pharmaceutical intermediates. The company said
proceeds from the sales may be used to fund the second half of its $2 billion
stock buyback that is set to be completed by May.
LabCorp, of Burlington, North Carolina, will offer jobs
to the 1,900 employees of the Genzyme unit. The company is one of the country's
biggest laboratory testing businesses specializing in routine testing, with 38
primary testing locations and more than 1,500 patient service centers.
The
transaction is subject to antitrust approval and is expected to close by
year-end.
