FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Quest Diagnostics to Acquire Bankrupt Provant Health in "Stalking Horse" Sale

August 29, 2018, 08:00 AM
Filed Under: Healthcare

Hooper Holmes, Inc. d/b/a Provant Health announced that it has entered into an asset purchase agreement with Summit Health, Inc., a subsidiary of Quest Diagnostics, a provider of diagnostic information services.

Under the asset purchase agreement, Quest expects to acquire substantially all of Provant Health’s assets and to continue the Company’s service offerings. Throughout the transaction process, Provant Health will continue to serve its customers, remaining focused on meeting customer and partner obligations in the busy fourth quarter season. Upon completion of the transaction, Quest will lend its history, expertise, and resources in the health care space to enhance the experiences of Provant Health’s customers and partners.

Mark Clermont, president of Provant Health, commented, “We believe that the purchase of Provant Health by Quest will extend greater value to our customers and partners than ever before. Quest recognized that Provant Health’s comprehensive services add valuable programs, people and technology to its offerings. Quest’s reach in its space is unrivaled, and its knowledge, resources, and capabilities will only enhance the experiences of those we serve.”

To support Provant Health in meeting its working capital requirements during the sale process, the Company has signed definitive agreements with its two primary lenders, SWK Funding LLC (SWK) and CNH Finance Fund I, L.P. (CNH) to provide debtor in possession financing of up to $13.6 million.

The Quest asset purchase agreement takes the form of a “stalking horse” bid, with the sale to be completed after an auction process carried out under the terms of section 363 of the bankruptcy code. The Quest asset purchase agreement also contains a transition services agreement “TSA” through December 31, 2018, to ensure a smooth client transition and seamless continued operations.

“We expect that our acquisition by Quest will position us more strongly for success,” noted Jim Fleet, chief restructuring officer/senior executive in charge of Provant Health.

In conjunction with the sale process, the Company petitioned for Chapter 11 bankruptcy on Monday, August 27, 2018, to facilitate a rapid 363 sale process. The transaction is expected to close in October 2018 after review and approval by the bankruptcy court.

Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.