SYDNEY, AUSTRALIA: Sonic Healthcare Limited announced the signing of binding agreements for the acquisition of SYNLAB Suisse SA, the Swiss laboratory network of SYNLAB Group.
This acquisition follows SYNLAB Group’s strategic decision to divest its Swiss operations.
SYNLAB Suisse operates 19 laboratories across Switzerland, employing approximately 600 staff. With annual revenues of approximately CHF100 million, SYNLAB Suisse is one of the few laboratory groups covering all three Swiss language regions.
The network provides a wide range of routine and specialty laboratory services, including anatomical pathology and human genetics, to general practitioners, specialists, and hospital clients.
The integration of SYNLAB Suisse with Sonic will be overseen by Sonic’s existing Swiss leadership team, in collaboration with SYNLAB Suisse’s management team.
The purchase price for this acquisition is CHF150 million (excluding cash and debt), which will be financed using Sonic’s existing cash and debt facilities in Swiss francs.
The transaction is expected to enhance earnings per share (EPS) starting from CY 2024 and generate a return on invested capital (ROIC) exceeding Sonic’s cost of capital within two years. The accretion of EPS and ROIC is projected to increase significantly as substantial synergies are achieved in various areas, including infrastructure and operations.
Swiss merger control clearance has already been obtained, and the transaction is set to close on July 3, 2023.
Dr. Colin Goldschmidt, CEO of Sonic, expressed his enthusiasm, stating, “The partnership with SYNLAB Suisse represents a significant expansion for Sonic Healthcare in Switzerland. We warmly welcome the pathologists and staff of SYNLAB Suisse to our team at Sonic Healthcare, both in Switzerland and worldwide. By combining forces with SYNLAB Suisse across all three Swiss language regions, we aim to enhance and strengthen our service offerings for clinicians and their patients.”
Although this transaction marks an important strategic step for Sonic Healthcare in Switzerland, it is not considered material for Sonic Healthcare Limited.
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