Charles River Laboratories announced a comprehensive portfolio restructuring involving the sale of its Contract Development and Manufacturing Organization (CDMO) and Cell Solutions businesses to GI Partners, alongside the divestiture of certain European Discovery Services assets to IQVIA Holdings. The transactions represent a significant shift in the company's operational focus and capital allocation strategy.
While the divestitures are projected to reduce 2026 revenues by more than $200 million, management expects the portfolio actions to meaningfully enhance profitability metrics. The company anticipates adjusted operating margins will expand by at least 100 basis points following the transactions, with adjusted earnings per share increasing by approximately 10 cents in the 2026 fiscal year.
In response to the strategic realignment, Charles River raised its fiscal 2026 adjusted earnings per share guidance to a range of $10.80 to $11.30, reflecting management's confidence in the streamlined business model and the accretive nature of the planned transactions.