Sonic Healthcare acquisition of German lab group for $700m
Good news in the healthcare world! Sonic Healthcare, a pathology services provider, has exciting plans to acquire Germany’s Laboratory Group Dr. Kramer & Colleagues (LADR) for a significant sum of $698.6 million.
In this deal, Sonic Healthcare will be issuing shares worth up to €222 million to the sellers, with the remaining balance paid in cash from Sonic’s cash reserves and debt facilities. This move is predicted to be a boon for their earnings per share (EPS) right off the bat, with even more positive impacts expected over the next three years. Sonic predicts that by then, the return on invested capital (ROIC) will be well above their cost of capital, standing at over 11% annually.
The blending of Sonic’s German business with LADR is expected to be a perfect match, offering plenty of opportunities for synergy across their operations. LADR itself is a major player in Germany’s medical laboratory scene, boasting over 2,800 full-time equivalent employees and a solid network of labs throughout the country. On top of their German presence, LADR also operates in Poland and has a stake in a Finnish venture.
As part of this acquisition, Sonic will also gain a 15% interest in another German medical laboratory business, significantly boosting their reach and influence in the region. The future looks bright for Sonic Healthcare as they continue to expand and innovate in the healthcare landscape.
