Charles River agrees to $470 million Frontage deal
By Jon CuthbertKey points
- Charles River Laboratories agreed to acquire Frontage Holdings' bioanalysis and DMPK operations in Pennsylvania for approximately US$470 million in cash, plus up to US$75 million in performance-based payments.
- The acquisition includes two laboratory sites covering approximately 150,000 square feet and employing around 340 people, including a CLIA-certified central laboratory.
- Charles River expects the transaction to expand its clinical testing capabilities, remain neutral to non-GAAP earnings per share in 2027 and become accretive thereafter.
Charles River Laboratories International (NYSE:CRL) agreed to acquire Frontage Holdings' bioanalysis and DMPK operations in Exton, Pennsylvania, for approximately US$470 million in cash, plus up to US$75 million in performance-based payments.
The acquired operations represented approximately 40% of Frontage's total 2025 revenue of US$256.7 million, providing Charles River with additional clinical testing capabilities.
The transaction covers two Exton laboratory sites spanning approximately 150,000 square feet and employing around 340 people, including a CLIA-certified central laboratory providing bioanalysis, biomarker and drug metabolism testing services.
Charles River is participating in a consortium with Frontage controlling shareholder Hongkong Tigermed and Frontage Chairman Dr. Song Li to take Frontage private before separating its businesses, with Charles River retaining the Exton bioanalysis and DMPK operations.
The acquisition is expected to close in the first half of 2027, subject to approvals and customary conditions, with Charles River expecting neutral non-GAAP earnings per share impact in 2027 and accretion thereafter, while financing the purchase through available cash and its credit facility.
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