Charles River Labs Divests Two Business Lines
Charles River Laboratories announced the divestiture of its contract development and manufacturing (CDMO) and cell solutions businesses to private equity firm GI Partners. The move signals strategic shifts and ongoing M&A activity within the laboratory services sector.
- The divestiture includes Charles River's contract development and manufacturing (CDMO) sites in Tennessee, Maryland, and the United Kingdom, as well as a cell solutions site in California. - In 2025, the businesses sold to GI Partners generated a combined annual revenue of $143 million. - The financial terms of the deal with GI Partners consist primarily of future, contingent performance-based payments rather than a large upfront sum. - This sale is part of a broader strategic realignment for Charles River, which simultaneously sold some of its European discovery service assets to competitor IQVIA for approximately $145 million. - Charles River only entered the CDMO market in 2021 through the acquisitions of Cognate BioServices and Vigene Biosciences. - The company anticipates that shedding these businesses will boost its adjusted operating margin by at least 100 basis points and increase its adjusted earnings per share by about $0.10 in 2026. - For the buyer, GI Partners, this acquisition adds to its portfolio of investments in the healthcare and life sciences sectors, which has previously included companies focused on clinical trial technology and life sciences real estate. - The move reflects a larger trend of consolidation and strategic M&A within the contract research organization (CRO) sector, as companies aim to specialize and enhance core service offerings.
