Charles River Laboratories has entered into definitive agreements to acquire Frontage Holdings' bioanalysis and DMPK operations in Exton, Pennsylvania, for approximately $470 million in cash, subject to customary closing adjustments. The transaction includes additional payments of up to $75 million contingent on future performance of the acquired businesses. It is expected to close during the first half of 2027, subject to shareholder and regulatory approvals and other customary conditions.
The acquisition includes a CLIA-certified central laboratory and encompasses two Exton sites spanning approximately 150,000 square feet with approximately 340 employees. The businesses provide bioanalysis, biomarker and DMPK testing services for large and small molecules, primarily supporting clinical development programs for biopharmaceutical clients. In 2025, the acquired businesses represented approximately 40% of Frontage's total revenue of $256.7 million.
CEO Birgit Girshick said the acquisition accelerates the company's strategy to expand bioanalysis capabilities in an attractive, high-growth market, as clients seek partners that can support programs from early development through the clinic. Approximately 15% of Charles River's current bioanalysis revenue comes from clinical-phase testing, while the majority of the acquired business's 2025 bioanalysis revenue was generated during clinical development.
The transaction is expected to be neutral to non-GAAP EPS in 2027 and accretive thereafter. Financing will come through Charles River's credit facility and available cash, and the acquired businesses will be reported as part of the DSA segment.
The deal is structured through a consortium with Tigermed and Dr. Song Li that will first take Frontage private via a court-sanctioned scheme of arrangement, after which Charles River will retain the bioanalysis and DMPK businesses. Frontage's remaining businesses will transfer to Tigermed and Dr. Song Li.