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Newly public Fortrea (NASDAQ:FTRE), a spin out of Labcorp, saw its shares dip 4% in afternoon trading Wednesday during its second day as a separately traded company.
Labcorp (NYSE:LH) spun out Fortrea as an independent contract research organization on June 30. Shares of Fortrea made their debut on July 3, closing at $36.84. The stock recently sold at $35.52 at around 1:45 p.m. ET.
Labcorp shareholders each received one Fortrea share for each Labcorp share held. The shares were distributed to Labcorp shareholders on Friday evening.
Fortrea paid Labcorp $1.6B at the closing as partial consideration for assets that Labcorp contributed to the spinout. Labcorp said it intends use $1B of the cash for a stock buyback and another $300M to pay down debt, with the remainder to be used for future stock buybacks and dividends.
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