Covance to Establish a New Nutritional Chemistry and Food Safety Laboratory in Battle Creek, Michigan

- Covance and Kellogg Company enter into a 7-year strategic collaboration to conduct food testing in the new facility -

Dec 01, 2009, 09:48 ET from Covance Inc.

PRINCETON, N.J., Dec. 1 /PRNewswire-FirstCall/ -- Covance Inc. (NYSE: CVD) today announced that it will create a nutritional chemistry and food safety laboratory in Battle Creek, Michigan. The new laboratory will support clients in the region across a wide range of testing, including a significant expansion of Covance's microbiological food safety testing capability.

The laboratory will be affiliated with the new National Center for Food Protection (NCFP) in Battle Creek. The NCFP is a global food protection resource development and collaboration network initiated through the efforts of Battle Creek Unlimited, an economic development organization. The NCFP's mission is to enhance the safety of the global food supply by focusing on activities involving testing, inspection training, and technology development. Covance will perform food testing, which will give all manufacturers access to the company's market-leading analytical chemistry, stability, and food safety testing services. In addition, a Covance representative will serve on the Advisory Board for the NCFP's Emerging Technology Accelerator initiative.

Covance plans to invest approximately $14 million to acquire and renovate a 30,000 square foot building on East Hamblin Avenue. The laboratory is expected to be operational in the fourth quarter of 2010, and will create approximately 40 new jobs over time. Covance expects to receive approximately $4.3 million in combined financial incentives from the state of Michigan and Battle Creek.

In addition, Covance has entered into a 7-year, $42 million strategic services contract with Kellogg Company to consolidate much of the food company's analytical chemistry, microbiology, and stability testing with Covance. Kellogg's will be an anchor client in this new facility.

"We are excited to expand our contributions to improving and protecting the global food supply. Food safety is top of mind among consumers, manufacturers, regulators, and legislators amidst recent food safety outbreaks," said James Lovett, Corporate Senior Vice President of Covance. "We appreciate the confidence a high-quality organization like Kellogg's has placed in us, and we look forward to further growth through expanding our relationships with other valued clients in the region and through supporting the National Center for Food Protection. We also look forward to becoming a more active participant in the Battle Creek community."

"We are pleased to have Covance, a market leader in nutritional testing, support NCFP's efforts," said Stephen Benoit, President and Chief Operating Officer of NCFP. "Covance's involvement will help us establish the Food Testing Center for Excellence that will greatly benefit Michigan-based and other leading food manufacturers."

"This strategic alliance with Covance is a natural evolution of a trust-based relationship that has grown over 30 years," said Margaret Bath, Corporate Vice President, Research, Quality, and Technology, Kellogg Company. "This relationship enables Kellogg's to work with a high-quality laboratory testing partner while we focus on our core competencies in developing and producing nutritious, safe, and great-tasting products that meet our high quality standards."

About Covance

Covance, with headquarters in Princeton, NJ, is one of the world's largest and most comprehensive drug development and food testing companies with annual revenues greater than $1.7 billion, global operations in more than 25 countries, and more than 10,000 employees worldwide. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through its website at

Statements contained in this press release, which are not historical facts, are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements including the statements contained herein regarding anticipated trends in the Company's business are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, competitive factors, outsourcing trends in the pharmaceutical industry, levels of industry research and development spending, the Company's ability to continue to attract and retain qualified personnel, the fixed price nature of contracts or the loss of large contracts, the closing of the acquisition of the Battle Creek building, and other factors described in the Company's filings with the Securities and Exchange Commission.

SOURCE Covance Inc.