CRL · 10-Q · 2026Q3 · Full report
Acquisition / Partnership / Divestiture
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. · 2026-11-04 · Importance 65 · Surprise 60 · In source text
The company acquired an additional 79% interest in PathoQuest SAS on April 17, 2026, for $67.4 million, and acquired Cambodian NHP Supplier assets on January 14, 2026, for a preliminary purchase price of $507.3 million, funded partly through the Credit Facility. On May 22, 2026, it sold certain European Discovery Services businesses to IQVIA for $126.4 million in cash, with up to $10.0 million in contingent payments. On May 6, 2026, it sold its CDMO and Cell Solutions businesses to GI Partners, with net cash paid to the buyer of $12.4 million; it may have to fund up to $45.0 million of future losses and capital expenditures over four years and may receive up to $50.0 million in contingent payments. The company also sold assets at its Wilmington, Massachusetts site in March 2026 for $60.1 million and entered into a long-term operating lease for certain buildings.
Key facts
- On May 22, 2026, the Company sold certain European Discovery Services businesses to IQVIA for $126.4 million in cash, net of selling costs and subject to customary closing adjustments, and may earn up to $10.0 million in contingent payments. source
- On January 14, 2026, the Company acquired certain assets of Cambodian NHP Supplier for a preliminary purchase price of $507.3 million, comprising $335.0 million paid at closing and $172.3 million of deferred consideration fair value. source
- The CDMO and Cell Solutions businesses were classified as held for sale as of March 28, 2026, and a $118.0 million pretax loss was recognized for the quarter ended that date. source
- In March 2026, the Company sold assets at its Wilmington, Massachusetts site for $60.1 million net of selling costs and entered into a long-term operating lease for certain buildings. source
- The Company may be required to fund up to $45.0 million of future EBITDA losses and capital expenditures of the divested CDMO and Cell Solutions businesses over four years, expected to be fully used by GI. source
- On April 17, 2026, the Company acquired an additional 79% equity interest in PathoQuest SAS for $67.4 million, funded with available cash and Credit Facility proceeds; the business is reported in Manufacturing. source
- The Company may earn up to $50.0 million of contingent payments tied to future performance and milestone achievement from the CDMO and Cell Solutions divestiture; the receivable was valued at $15.7 million. source
- The Company recognized a $181.7 million pretax loss on the CDMO and Cell Solutions divestiture for the nine months ended September 26, 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -18.5% | The Company recognized a $181.7 million pretax loss on the CDMO and Cell Solutions divestiture for the nine months ended September 26, 2026. |
| cash | negative | realized | -4.5% | On January 14, 2026, the Company acquired certain assets of Cambodian NHP Supplier for a preliminary purchase price of $507.3 million,… |
| operating_income | positive | realized | +3.9% | The Wilmington sale-leaseback derecognized $21.6 million of book value and generated an approximately $38.5 million pretax gain. |
| cash | negative | realized | -2.3% | The Company paid $100.0 million and $170.0 million of Cambodian NHP Supplier deferred consideration during the three and nine months ended… |
| cash | positive | realized | +1.7% | On May 22, 2026, the Company sold certain European Discovery Services businesses to IQVIA for $126.4 million in cash, net of selling costs… |
| cash | negative | realized | -0.9% | On April 17, 2026, the Company acquired an additional 79% equity interest in PathoQuest SAS for $67.4 million, funded with available cash… |
| cash | positive | realized | +0.8% | In March 2026, the Company sold assets at its Wilmington, Massachusetts site for $60.1 million net of selling costs and entered into a… |
| assets | negative | realized | -0.3% | The Wilmington sale-leaseback derecognized $21.6 million of book value and generated an approximately $38.5 million pretax gain. |
| assets | positive | realized | +0.2% | The Company may earn up to $50.0 million of contingent payments tied to future performance and milestone achievement from the CDMO and… |
| cash | negative | realized | -0.2% | On May 6, 2026, the Company sold its CDMO and Cell Solutions businesses to GI Partners for net cash paid to the buyer of $12.4 million,… |
| liability | negative | realized | -0.1% | The Company paid $100.0 million and $170.0 million of Cambodian NHP Supplier deferred consideration during the three and nine months ended… |
| cash | positive | contingent | +0.1% | The Company may earn up to $50.0 million of contingent payments tied to future performance and milestone achievement from the CDMO and… |