Covance to Acquire TRAC Microbiology, Inc.
Expands microbiology capabilities, adds food safety consulting services
PRINCETON, N.J., August 10, 2011 – Covance (NYSE: CVD) today announced it has entered into a definitive agreement to acquire TRAC Microbiology, Inc., a Madison, Wisconsin-based food microbiology and chemistry laboratory. TRAC provides testing, research, auditing, and consulting services to clients ranging from small family businesses to the world’s largest food-based corporations.
"Microbiology is a key growth engine for Covance’s nutritional chemistry and food safety service offering and an area where we see tremendous opportunity to help our clients protect the global food supply," said James Lovett, Corporate Senior Vice President, Covance. "The acquisition of TRAC brings new scientific talent to Covance and expands the knowledge base and expertise of our microbiology staff in Madison, Wisconsin, and Battle Creek, Michigan. It also allows us to add new services such as consulting, auditing, and research."
"As a leader in nutritional testing, and with its rapid expansion into microbiology, Covance is well suited to integrate and further develop TRAC's consulting capabilities, high-quality testing processes, and strong focus on client service," said Virginia Deibel, Ph.D., Chief Executive Officer and co-founder of TRAC Microbiology. "We are delighted to join forces with Covance to help clients augment their quality and food safety programs."
Virginia Deibel will assume the role of Director, Consulting Services, Microbiology, at Covance. Dr. Deibel will provide consultation services on all aspects of plant operations as they relate to microbial quality and safety, and act as a liaison between clients and the FDA/USDA during product-positive events. She also will continue to develop Hazard Analysis & Critical Control Point (HACCP), environmental monitoring, and plant-practice programs. Dr. Deibel holds a master’s degree in bacteriology and a doctorate in food microbiology and toxicology from the University of Wisconsin, Madison.
"Dr. Deibel has an excellent reputation in our industry. Her expertise in investigative microbiology and determining the causes of food cross-contamination is well known across the industry and will strengthen the value we deliver to existing and future clients. We are excited to welcome her and other talented TRAC scientists and technicians to our team," said Marlo Vasquez, Vice President and General Manager, Nutritional Chemistry and Food Safety, Covance.
With more than 75 years of experience, Covance has a market-leading position in nutritional testing for the food, agricultural, biotech and dietary supplement industries. The TRAC acquisition is the latest example of Covance's continued investment to expand its range of microbiological food safety capabilities and services. In October 2010, Covance opened a nutritional chemistry and food safety laboratory in Battle Creek, Michigan.
Statements contained in this press release, which are not historical facts, such as statements about prospective earnings, savings, revenue, operations, revenue and earnings growth and other financial results are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements including the statements contained herein regarding anticipated trends in the Company's business are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, competitive factors, outsourcing trends in the pharmaceutical industry, levels of industry research and development spending, the Company's ability to continue to attract and retain qualified personnel, the fixed price nature of contracts or the loss or delay of large studies, risks associated with acquisitions and investments, the Company's ability to increase order volume, the pace of translation of orders into revenue in late-stage development services, testing mix and geographic mix of kit receipts in central laboratories, fluctuations in currency exchange rates, and other factors described in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no duty to update any forward looking statement to conform the statement to actual results or changes in the Company's expectations.