Sonic Healthcare strengthens German presence with $698 million deal for LADR laboratory group
Sonic Healthcare is making big moves in the European market by acquiring LADR, a major medical testing operation in Germany. The deal is worth a whopping $698.5 million and brings together two powerful players in the healthcare industry.
LADR, which stands for Laboratory Group Dr. Kramer & Colleagues, has been a family-owned business for nearly 80 years. It is among the top five medical laboratory groups in Germany, with operations also in Poland and Finland. Sonic Healthcare is finalizing the acquisition through a share and scrip deal, which will see the senior leadership of LADR join forces with Sonic.
The executives from LADR, including CEO Professor Jan Kramer, medical director Dr. Tobias Kramer, and CFO Thomas Wolff, have all signed on for long-term contracts with Sonic. The collaboration between Sonic and LADR is seen as a significant step for Sonic in Germany and Europe.
This acquisition is expected to boost Sonic’s annual revenue by about $610 million and EBITDA by around $82 million. The deal is not only financially lucrative but also strategically important for both companies. Sonic’s CEO, Dr. Colin Goldschmidt, expressed excitement about the partnership with LADR and emphasized the shared commitment to medical excellence and high-quality service.
LADR, with around 2,800 full-time equivalent employees, operates a national network of laboratories throughout Germany. The company has a strong presence in medical laboratory services, generating over 80% of its revenue from this sector. The remaining revenue comes from medical supplies trading and logistical services.
The acquisition will be funded through a combination of cash and shares, with Sonic issuing shares worth approximately $366 million. The deal is set to be immediately accretive to Sonic’s earnings per share and is expected to achieve high single-digit percentage accretion after three years, thanks to synergies between the two companies.
The acquisition is still pending regulatory approvals but is anticipated to be finalized in the first half of the upcoming year. Sonic Healthcare’s expansion into the European market is a strategic move that is poised to strengthen its position in the healthcare industry. Stay tuned for more updates on this exciting development in the world of finance and healthcare.
