Investors Push for Sale of Charles River Laboratories

Relational Investors and the California State Teachers’ Retirement System are pushing Charles River Laboratories to put itself up for sale, Reuters reported, citing an article in the Wall Street Journal. The two groups hold a 6.1% combined stake in that clinical research company. The Wall Street Journal reported that Charles River Laboratories – which has two main segments: preclinical services, and research models and services – could draw interest from private equity investors.

(Reuters) – Investors are trying to persuade Charles River Laboratories International Inc to put itself up for sale, the Wall Street Journal said, citing people familiar with the matter.

Relational Investors LLC and the California State Teachers’ Retirement System (Calstrs), who have raised their combined stake in the clinical research company to 6.1 percent, have met with the Charles River’s board and management regarding a possible sale, after recent expansion plans did not materialize, the paper reported.

The company, which has two main segments – preclinical services and Research Models and Services, could draw interest from private equity firms due to the niche nature of its businesses, the report said.

The paper also said, citing sources, though investors hope to push Charles River to sell itself, a sale of the two units independently might be more likely.

Charles River declined to comment to the Journal on Wednesday.

Charles River, Relational Investors and Calstrs could not be immediately reached for comments by Reuters outside regular U.S. business hours.

(Reporting by Abhinav Sharma in Bangalore; Editing by Muralikumar Anantharaman)