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Sonic Healthcare Ltd (ASX:SHL) is increasing its footprint in Europe by acquiring Laboratory Group Dr. Kramer & Colleagues (or LADR) – regarded as one of Germany’s ‘top five’ medical laboratory groups, with a network of standalone and hospital-based laboratories throughout the country.
Sonic has entered binding agreements to take on LADR – whose cash and debt free Enterprise Value (EV) has been set at €423 million – with the deal revolving around the issue of ordinary shares in Sonic Healthcare with a maximum value of €222 million; the balance will be paid in cash.
LADR was founded in 1945 and has been owned by the Kramer family since. It’s now in its third generation under the family.
The lab group employs more than 2,800 full-time staff with its central laboratory located in the town of Geesthacht, to the East of Hamburg. It also has a presence in Poland.
The acquisition’s upside is based on the strength of LADR – expected to post a CY 2024 revenue of around €370 million (approximately A$610 million) – and the cultural and operation alignment between it and Sonic – especially synergies in areas such as procurement, laboratory overlaps, specialised testing, logistics, equipment maintenance and the supply and distribution of medical consumables.
Executives from both LADR and Sonic Healthcare Germany will play important roles in integrating operations, and LADR’s Prof. Jan Kramer – CEO and Medical Director – plus Dr. Tobias Kramer (Medical Director – Infection Prevention and Control) and Mr. Thomas Wolff (CFO) have all agreed to long-term, ongoing employment with Sonic.
Sonic Healthcare has been trading at $28.57.
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