Cinven has today completed the acquisition of Synlab, one of the largest European operators of medical diagnostic laboratories, headquartered in Germany. This follows the completion of the acquisition of Labco, headquartered in France which, combined with Synlab, has created the only truly pan-European clinical laboratories business operating across 35 countries and undertaking more than 400 million clinical tests annually across Europe with combined revenues of more than EUR1.5 billion.
Cinven's Healthcare team, along with its French and German teams, identified the opportunity to acquire and combine the Labco and Synlab businesses given the highly fragmented clinical diagnostics laboratories market across Europe - and therefore the considerable scope for further add-on acquisitions - and the genuine benefits of scale for operators able to provide diagnostics services more efficiently for patients and payors. Cinven has significant prior experience of the diagnostics sector following its successful investments in Phadia and Sebia, both in-vitro diagnostics businesses which supplied testing equipment to clinical laboratories. In addition, Cinven's healthcare team has demonstrated its successful 'buy and build' approach through its recent realisation of AMCo, the niche specialty pharmaceuticals group, to Concordia Healthcare Corp. AMCo was originally formed from a combination of Mercury Pharma and Amdipharm and then successfully acquired and integrated a further five businesses.