Private equity firm Cinven announced today that they were acquiring a majority share in the German laboratories group Synlab. Cinven has yet to disclose how large the deal will be, or provide any detail on the monetary aspect of the transaction.
Synlab which provides human and veterinary laboratory services, as well as environmental analysis, operates in 23 European countries, with laboratories in around 300 locations and employing over 7,000 people. In 2014 the group registered sales of approximately €756 million.
The group will be a useful addition to Cinven’s empire. Last year they acquired a majority share in Labco, the France based diagnostic service providers. Cinven paid an enterprise value of €1.2 billion for the company.
Alex Leslie, Senior partner in Cinven, highlighted the complimentary nature of the businesses when the deal was announced. ‘We believe that the combination of Labco and synlab, two highly complementary businesses, will provide clear benefits for patients and payors across Europe and will create a European champion in the industry’.
The CEOs of both Labco and the newly acquired Synlab were equally optimistic about the implications of the deal. Bartl Wimmer the CEO of Synlab indicated that the takeover would have positive effects on the industry. ‘Cinven has an excellent reputation as an investor in the European healthcare sector, and already has substantial experience in the diagnostics sector. We are looking forward to working with them on growing our business and being able to offer more healthcare professionals and patients access to diagnostic services internationally to improve the detection and prevention of diseases’.
Philippe Charrier, CEO of Labco, added: ‘At Labco, we are excited about having the chance to work together with the synlab team. Our two businesses are highly complementary with little direct geographic overlap and we share Cinven’s vision of creating a European champion in the diagnostics industry’.