Australian medical diagnostics company Sonic Healthcare (ASX:SHL) has announced its acquisition of Swiss laboratory network Synlab Suisse for CHF100m ($250.9m). This strategic move marks a significant expansion of Sonic’s presence in Switzerland.
The decision to purchase Synlab Suisse was prompted by Synlab Group, the parent company, divesting its Swiss operations, which currently employ 600 staff across 19 laboratories. Sonic Healthcare saw an opportunity to capitalize on this development and strengthen its foothold in the Swiss market.
The acquisition will be financed in Swiss francs using Sonic’s existing cash reserves and debt facilities. The company anticipates that the deal will have a positive impact on its earnings per share, starting from the calendar year 2024. Furthermore, Sonic expects the return on invested capital to surpass the cost of capital within two years of completing the acquisition.
Dr. Colin Goldschmidt, Chief Executive of Sonic Healthcare, described the partnership as an “important step” for the company. By combining forces with Synlab Suisse, Sonic aims to enhance and reinforce its service offerings to healthcare professionals and their patients across all three Swiss language regions.
Following the announcement, Sonic Healthcare shares closed at $34.71, reflecting the positive reception of the news by investors.
With this acquisition, Sonic Healthcare demonstrates its commitment to expanding its global presence and strengthening its position as a leader in the medical diagnostics industry. The company’s extensive experience and expertise in providing innovative healthcare solutions make it well-equipped to navigate the Swiss market and continue delivering exceptional services to clinicians and patients alike.