Fresenius Medical Care (FMC) announced it has begun an agreement to divest certain assets of its wholly-owned Spectra Laboratories business to Quest Diagnostics. Spectra Labs provides renal-specific lab testing services in the U.S.

Under a separate agreement, Quest will also offer comprehensive lab services related to end-stage kidney disease (ESKD) and specialized water testing for those served by FMC-operated dialysis centers, as well as wholly owned and joint-venture partners of FMC in the U.S.

Dialysis-related water testing is a new capability for Quest. The arrangement also allows FMC more operational efficiencies and patients at dialysis clinics can benefit from Quest’s clinical leadership and diagnostic innovation in chronic kidney disease and transplantation services.

It will also leverage Quest’s national scale, as multiple Quest laboratories spread across the U.S. will provide testing for nearby dialysis clinics, reducing transportation time and speeding results reporting for some test services. Quest expects to perform testing across several of its laboratories during lower-volume daytime hours, optimizing the return on capital invested into its laboratory network.

Financial terms weren’t disclosed. The acquisition is anticipated to close in H2 2025, with transition of service to be completed in early 2026.

“This transaction is part of our comprehensive portfolio optimization strategy to drive operational efficiencies and will provide enhanced experiences for patients and our clinical employees by integrating Quest Diagnostic’s industry-leading expertise in laboratory medicine into our dialysis centers. This agreement is a step forward to allow us to remain focused on our core business of providing world-class dialysis care to every patient, every day,” said Helen Giza, CEO of Fresenius Medical Care. “Much like Fresenius Medical Care, Quest Diagnostics is passionate about creating a healthier future for patients. These shared values, along with Quest’s proven track record for quality care and service, make us confident that they are the right company to continue to deliver a high-quality experience to our patients, physician partners, and clinical staff.”

Fresenius Medical Care recently successfully finished year two of a three-year strategic turnaround and transformation plan.

“Our relationship with Fresenius Medical Care will extend our industry-leading test portfolio in chronic kidney disease, one of the nation’s most prevalent chronic diseases, to include dialysis-related laboratory and water testing,” said Jim Davis, Chairman, CEO and President, Quest Diagnostics. “It will also optimize Quest’s national scale to bring high-quality laboratory services closer to FME’s dialysis clinics and the patients under their care across the United States.”

Dechert LLP is serving as a legal advisor on the agreement. The Dechert team advising Quest was led by corporate partner Michael Darby and included associates Gurbir Sandhu and Joy Zhu.