Sonic Healthcare Limited has signed an agreement to acquire 100 per cent of the Labor 28 Group (Labor 28) based in Berlin, Germany.
Labor 28 is one of the largest laboratory groups in the Berlin area and has a strong reputation for quality, service excellence and financial efficiency. Labor 28 provides laboratory services within the Berlin metropolitan area, as well as in surrounding states. The company was founded in 1978 by Rolf Koenig who has built a strong management team and successfully grown the laboratory to its current size and market position. The group employs approximately 200 staff and is expected to achieve an EBITDA of over EUR 8 million for the 2008/9 financial year. Labor 28's senior management team and Medical Board will continue to lead the business post acquisition.
From its location in central Berlin, Labor 28 offers a broad range of tests to general practitioners, specialists, hospitals and other customers. Both of Sonic's national laboratories - Bioscientia Healthcare and the Schottdorf group - have significant presence in the Berlin market, including laboratories and courier networks.
The purchase price for Labor 28 is based on a prospective EBITDA multiple of approximately 8.8 times, excluding synergies. The acquisition will be immediately earnings per share accretive and will be funded in Euros from Sonic's existing syndicated senior debt facility. Settlement is conditional upon German anti-trust approval and is expected to occur in Sonic Healthcare's CEO and managing director Dr Colin Goldschmidt said: "The acquisition of Labor 28 represents an important step forward in Sonic's German and European strategy.
As a highly synergistic addition to our successful German businesses, Labor 28 adds further critical mass and strategic value in the important and populous Berlin region. We are proud to form an association with a laboratory operation of such high standing and I am confident that Labor 28 and its people will integrate well into Sonic's world-wide federation of laboratories. I take this opportunity to warmly welcome all Labor 28 staff to the Sonic group".