Labcorp, a global leader in laboratory services, has successfully completed the spin-off of Fortrea, an independent Contract Research Organization. Fortrea will now offer clinical trial management and technology solutions to pharmaceutical and biotechnology organizations on a global scale. The company is set to begin trading on the NASDAQ Stock Market under the symbol "FTRE."
Expressing his gratitude, Labcorp's chairman and CEO, Adam Schechter, commended the teams involved in creating two strong and independent companies through the spin-off process. The main objective of this transaction is to meet customer needs, drive value-creating investments, and enhance shareholder value. With this development, Labcorp is now well-positioned to fulfill its mission of improving health and lives.
As part of the spin-off agreement, Fortrea made a cash distribution of approximately $1.6 billion to Labcorp. These funds will be utilized for a $1.0 billion accelerated share repurchase program and for paying down $300 million of debt that matures this year. Any remaining funds will be returned to shareholders through future share repurchases or cash dividends.