SANTA MONICA, CA - BUSINESS WIRE - February 12, 2004
Specialty Laboratories, Inc. (NYSE:SP) (Specialty), a leading hospital-focused clinical reference laboratory, today announced an agreement for the sale and lease-back of its future headquarters and laboratory facility in Valencia, California, with Lexington Corporate Properties Trust (NYSE:LXP) (Lexington), a real estate investment trust. Under the terms of the agreement, Lexington will purchase the existing facility for $47 million and Specialty will complete the construction project and enter a twenty-year lease for use and occupancy of the facility.
Specialty will receive, net of transaction expenses, more than $24 million at closing of the sale, which is expected before the end of the first quarter 2004. Lease payments are expected to begin in the third quarter and, upon commencement of the lease, Specialty will be required to issue a $9.0 million Letter of Credit. Net of these contributions, Specialty expects to incur capital expenditures of approximately $12 million in 2004 to complete the construction project.
The Sale/Lease-Back transaction is subject to the satisfaction of customary conditions, including a due diligence period, final inspections and closing, each of which is expected to be completed by the end of the first quarter of 2004.
The new 198,000 square-foot facility under construction will consolidate Specialty's business activities within a single building and significantly increase available space for future growth and capacity. The purpose-built laboratory and headquarters building is situated on a 14-acre site located in the Valencia Corporate Park in Valencia, California.
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