Welsh Carson seals $570m healthcare exit

The firm will sell lab testing company Solstas Lab Partners, which it acquired in 2010. 

Welsh Carson Anderson and Stowe will sell commercial laboratory company Solstas Lab Partners Group to NYSE-listed Quest Diagnostics for $570 million, according to a statement. 

North Carolina-based Solstas provides hospital and physician office laboratory management and testing services in nine US states. Welsh Carson acquired the company in 2010. The transaction is expected to close during the first half of 2014. 

Welsh Carson is currently investing its $3.7 billion Fund XI and is in market with its Fund XII, which has a $3 billion target. The firm was unavailable for comment at press time. 

Last month, Welsh Carson hired William Frank, a former associate principal at McKinsey & Company, as an operating executive in its resources group focused on operational improvements at portfolio companies. 

On the exit front, Welsh Carson was part of an investor group led by Warburg Pincus that last year sold eye care business Bausch & Lomb to Canada’s Valeant Pharmaceuticals for $8.7 billion. Warburg and Welsh Carson acquired the company in 2007 for $4.4 billion.

Welsh Carson focuses on the healthcare and information and business services sectors. The firm has raised about $20 billion in capital since its founding in 1979.