- Charles River Laboratories has agreed to acquire Frontage Holdings Corporation’s bioanalysis and drug metabolism and pharmacokinetics (DMPK) operations in Exton, Pennsylvania, for approximately $470 million in cash, with additional performance-based payments of up to $75 million.
- The acquisition includes two laboratory sites spanning approximately 150,000 square feet, a CLIA-certified central laboratory and around 340 employees. The transaction is expected to close in the first half of 2027, subject to required approvals and customary closing conditions.
Charles River Laboratories has entered into definitive agreements to acquire Frontage Holdings Corporation’s bioanalysis and drug metabolism and pharmacokinetics (DMPK) operations in Exton, Pennsylvania, for approximately $470 million in cash. The transaction also includes additional payments of up to $75 million, contingent on the future performance of the acquired businesses. Closing is expected in the first half of 2027, subject to shareholder and regulatory approvals and other customary conditions.
The acquisition covers two laboratory sites operating across approximately 150,000 square feet and employing around 340 people. The facilities provide bioanalysis, biomarker and DMPK testing services for large and small molecules, primarily supporting clinical development programs for biopharmaceutical companies. The operations also include a CLIA-certified central laboratory.
The deal will expand Charles River’s clinical bioanalysis capabilities and complement its existing preclinical bioanalysis services, which primarily support biologics and complex modalities. The company said the combined bioanalysis and DMPK offering will provide more integrated support from preclinical research through clinical development. The acquired businesses are expected to become part of Charles River’s Discovery and Safety Assessment segment.
The acquired operations represented approximately 40% of Frontage’s total 2025 revenue of $256.7 million. Charles River expects the businesses to grow at the projected bioanalysis sector growth rate over the next five years. The transaction is expected to be neutral to non-GAAP earnings per share in 2027 and accretive thereafter. Charles River plans to finance the acquisition and associated fees through its credit facility and available cash.
The transaction forms part of a consortium involving Charles River, Frontage’s controlling shareholder Hongkong Tigermed Co., Limited, and Frontage Chairman Dr. Song Li. The consortium will first take Frontage private through a court-sanctioned scheme of arrangement. Following completion, Frontage’s businesses will be separated, with Charles River retaining the bioanalysis and DMPK operations in Exton and the remaining businesses transferred to Tigermed and Dr. Song Li or his affiliates.
