- Australian Clinical Labs (ACL) acquires Medlab Pathology, who own laboratories and collection centres across New South Wales (NSW) and Queensland (QLD)
- The $70 million acquisition allows the deliverance of a doubling of market share to 20.4 per cent in NSW and a strong entry platform in QLD with 6.5 per cent market share
- ACL now has specialist histology laboratories in each state which it operates and four across NSW and QLD, assisting the company in targeting the COVID traveller market
- ACL says it will look to increase the number of drive-through COVID testing sites as soon as possible across NSW and QLD
- Australian Clinical Labs shares finished the day of trading at $4.99
Australian Clinical Labs (ACL) has acquired Medlab Pathology, which owns laboratories and collection centres across New South Wales (NSW) and Queensland (QLD).
The acquisition with the leading Australian, privately-owned pathology provider, forms part of the strategic growth plan and has a geographic footprint.
This allows the deliverance of a doubling of market share to 20.4 per cent in NSW and a strong entry platform in QLD with a 6.5 per cent market share.
ACL will acquire the assets for $70 million, with an upfront consideration of $60 million at completion and deferred consideration of $5 million on completion of CY22 and a further $5 million subject to the achievement of non-COVID revenue retention hurdles.
The company says it anticipates synergies in excess of $10 million within 18-24 months at a cost of $10 million.
In NSW, Medlab operates a laboratory in Auburn and 205 collection centres, allowing ACL a more comprehensive coverage of the Sydney market.
In QLD, Medlab is operating a laboratory in Wilston and 83 collection centres, providing ACL with an entry into the Queensland medical community-funded market, complimenting ACL’s recent acquisition of the SunDoctors skin cancer clinics and Clinical Trials testing laboratory.
ACL now has specialist histology laboratories in each state in which it operates and four across NSW and QLD, assisting the company is targeting the private COVID traveller market.
Australian Clinical Labs chief executive officer, Melinda McGrath, says the company has a successful track record across NSW and QLD with many future opportunities.
“In NSW, the opportunity exists to combine the labs into one highly automated central lab with a broad range of efficiencies including reduced duplication, benefits associated with our courier route automation, improved scale and purchasing power,” she said.
“In QLD, we have a strengthened management team already in place to deliver the operational efficiencies and capitalise on the significant growth opportunity. We now have a substantial offering across the state with a molecular laboratory to facilitate the COVID offering, an established clinical and histopathology lab in Brisbane, a histopathology lab at the Gold Coast and a purpose built Clinical Trials laboratory in Brisbane.
“Our travel testing offering is continuing to gain momentum and we will look to increase the number of drive through COVID testing sites as soon as possible across NSW and QLD.”
ACL says it will look to increase the number of drive-through COVID testing sites as soon as possible across NSW and QLD.
Australian Clinical Labs shares finished the day of trading at $4.99.