Australia's Sonic Healthcare acquires SYNLAB's Swiss laboratory network (updated)

Synlab AG

27/06/2023 24:40

(Adds details on acquisition in paragraph 2, background and
additional details from paragraph 3)
       June 27 (Reuters) - Australia's Sonic Healthcare Ltd
 SHL.AX  said on Tuesday it would buy SYNLAB Group's  SYAB.DE 
Swiss laboratory network for 150 million Swiss francs ($167.52
million) to expand its presence in the country. 
    The SYNLAB Suisse SA deal will add to earnings per share
from 2024 and the return on invested capital will exceed Sonic's
cost of capital within two years of acquisition, the company
said.
    Sydney-based Sonic had signed deals to acquire clinical
laboratory chains in Germany and Tuesday's deal bolsters its
expansion in Europe.
    Sonic will fund the SYNLAB Suisse acquisition with existing
cash and debt facilities. The transaction has received a green
light from Swiss merger control and is expected to close on July
3.
    SYNLAB Suisse covers all three Swiss language regions and is
expected to generate annual revenues of about 100 million Swiss
francs from its 19 laboratories, the Aussie healthcare provider
said.     
    
     

($1 = 0.8954 Swiss francs)

 (Reporting by Jaskiran Singh in Bengaluru; Editing by Shweta
Agarwal and Sriaj Kalluvila)
 ((Jaskiran.Singh@thomsonreuters.com;))