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EQS-News: Cinven to sell minority stake in SYNLAB to strategic investor Labcorp (deutsch)

Cinven to sell minority stake in SYNLAB to strategic investor Labcorp

EQS-News: SYNLAB AG / Schlagwort(e): Sonstiges

Cinven to sell minority stake in SYNLAB to strategic investor Labcorp

17.09.2024 / 16:00 CET/CEST

Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.

Cinven to sell minority stake in SYNLAB to strategic investor Labcorp

International private equity firm, Cinven, has reached an agreement to sell

an indirect minority stake in SYNLAB, a leader in medical diagnostic

services and specialty testing in Europe, to strategic investor Labcorp.

Labcorp is a global leader of innovative and comprehensive laboratory

services headquartered in the United States. Labcorp will acquire the

indirect minority stake through an intermediate holding company established

to hold the investment with SYNLAB and will be represented on the holding

company board along with Cinven and the other co-investors. The purchase

price for this indirect minority stake of 15 percent was approximately EUR140

million.

SYNLAB offers a full range of innovative and reliable medical diagnostic

services to patients, practising doctors, hospitals and clinics, governments

and corporates. With more than 27,000 employees, including over 2,000

medical experts, SYNLAB operates in over 30 countries across four continents

and has leading positions in many markets. The company performed

approximately 600 million laboratory tests and achieved revenues of EUR2.64

billion in 2023.

SYNLAB has made significant progress under Cinven's ownership and the

leadership of CEO, Mathieu Floreani. The combination of a successful

buy-and-build strategy, growth investments and a series of commercial and

operational initiatives have enabled SYNLAB to achieve strong organic growth

and successfully navigate a challenging market environment over the last two

years. Key initiatives included:

* Making significant investments in state-of-the-art laboratory and

information technology to enhance efficiency and improve the customer

experience;

* Establishing a strong track record of partnerships with public

hospitals;

* Improving the accessibility of medical diagnostic services for consumers

and expanding the availability of the latest innovations and specialty

testing across its network;

* Advancing medical research in partnership with the scientific community,

publishing more than 300 articles annually in scientific journals;

* Strengthening the capabilities and global network of SYNLAB through a

successful track record of strategic and bolt-on acquisitions;

* Expanding into new markets internationally, particularly across Latin

America; and

* Supporting the development and implementation of a strong ESG and

sustainability programme.

Anastasya Molodykh-McFarlane, Senior Principal and member of Cinven's

Healthcare sector team, stated:

"We are very pleased to welcome Labcorp as a shareholder in SYNLAB. We have

great respect for the long-term growth story and healthcare excellence at

Labcorp and believe that Labcorp's investment underscores the future

potential of SYNLAB. The investment by Labcorp is another significant

milestone in Cinven's strong Healthcare track record."

Glenn Eisenberg, Chief Financial Officer, Labcorp, commented:

"Our investment in SYNLAB as a minority shareholder provides Labcorp with a

role on the co-investors' holding company board and the commitment to

explore possible opportunities in the future to bring Labcorp's innovative

specialty tests to markets in Europe, consider possible procurement

collaborations, evaluate opportunities to support advances in clinical

trials and enrollment and improve personalized care."

Mathieu Floreani, CEO of SYNLAB, added:

"With Cinven, SYNLAB has a strong majority shareholder who knows the company

and the sector very well. Together, we have built the leading European

clinical laboratory and medical diagnostic services company. Through

Labcorp's minority investment, SYNLAB now receives additional backing from a

strategic investor that is deeply embedded in the diagnostics market. I am

excited to continue our development together with the Cinven team and

Labcorp and explore opportunities to bring Labcorp's innovative specialty

tests into markets across Europe."

Completion of the transaction is expected in the first quarter of 2025 and

is subject to regulatory approvals.

Media contacts

Cinven

Alison Raymond Tel. +44 (0)7826 856 198 Email.

[1]alison.raymond@cinven.com 1.

mailto:alison.raymond@cinven.com

Clare Bradshaw Tel. +44 (0)7881 918 967 Email.

[1]clare.bradshaw@cinven.com 1.

mailto:clare.bradshaw@cinven.com

FTI Consulting

(Advisers to

Cinven)

Lutz Golsch Tel. +49 (0)173 651 7710 Email.

[1]lutz.golsch@fticonsulting.com 1.

mailto:lutz.golsch@fticonsulting.com

David Eeckhout Tel. +49 (0)151 467 12316 Email.

Labcorp Kimbrel [1]david.eeckhout@fticonsulting.com Tel. +1

Arculeo (Media) 336-436-8263 Email. [2]Media@labcorp.com Tel. +1

Christin 336-436-5076 Email. [3]Investor@labcorp.com 1.

O'Donnell mailto:david.eeckhout@fticonsulting.com 2.

(Investors) mailto:Media@labcorp.com 3.

mailto:Investor@labcorp.com

About Cinven

Cinven is a leading international private equity firm focused on building

world-class global and European companies. Its funds invest in six key

sectors: Business Services, Consumer, Financial Services, Healthcare,

Industrials and Technology, Media and Telecommunications (TMT). Cinven has

offices in London, New York, Frankfurt, Paris, Milan, Madrid, Guernsey and

Luxembourg.

Cinven takes a responsible approach towards its portfolio companies, their

employees, suppliers, local communities, the environment and society.

Cinven Capital Management (V) General Partner Limited, Cinven Capital

Management (VI) General Partner Limited, Cinven Capital Management (VII)

General Partner Limited and Cinven Capital Management (SFF) General Partner

Limited are each authorised and regulated by the Guernsey Financial Services

Commission, and Cinven Limited is authorised and regulated by the Financial

Conduct Authority.

In this press release 'Cinven' means, depending on the context, any of or

collectively, Cinven Holdings Guernsey Limited, Cinven Partnership LLP, and

their respective Associates (as defined in the Companies Act 2006) and/or

funds managed or advised by any of the foregoing.

For additional information on Cinven please visit www.cinven.com and

www.linkedin.com/company/cinven/.

About Labcorp

Labcorp(NYSE: LH) is a global leader of innovative and comprehensive

laboratory services that helps doctors, hospitals, pharmaceutical companies,

researchers and patients make clear and confident decisions.We provide

insights and advance science to improve health and improve lives through our

unparalleled diagnostics and drug development laboratory capabilities.The

company's more than 67,000 employees serve clients in approximately 100

countries, provided support for 84% of the new drugs and therapeutic

products approved in 2023 by the FDA and performed more than 600 million

tests for patients around the world.Learn more about us at www.labcorp.com.

About SYNLAB

SYNLAB Group is the leader in medical diagnostic services and specialty

testing in Europe. The Group offers a full range of innovative and reliable

medical diagnostics to patients, practising doctors, hospitals and clinics,

governments and corporates.

Providing the leading level of service within the industry, SYNLAB is the

partner of choice for routine and specialty diagnostics in human medicine.

The Group continuously innovates medical diagnostic services for the benefit

of patients and customers.

SYNLAB operates in more than 30 countries across four continents and holds

leading positions in most markets, regularly reinforcing the strength of its

network through a proven acquisition strategy. More than 27,000 employees,

including over 2,000 medical experts, contribute every day to the Group's

worldwide success.

SYNLAB performed around 600 million laboratory tests and achieved revenues

of EUR2.64 billion in 2023.

More information can be found on www.synlab.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements, including but not

limited to statements with respect to the benefits of Labcorp's indirect

minority investment in SYNLAB, potential opportunities to bring Labcorp's

innovative specialty tests to market in Europe, potential procurement

collaborations between Labcorp and SYNLAB and potential support for advances

in clinical trials and the expected timing to close the transaction.

Each of the forward-looking statements is subject to change based on various

important factors, many of which are beyond the parties control, including

without limitation: (i) the risk that the transaction may not be completed

in a timely manner or at all; (ii) expected timing to closing; (iii) the

failure to satisfy closing conditions, including the receipt of certain

regulatory approvals; (iv) the occurrence of any event, change or other

circumstance that could give rise to the termination of the transaction

agreements; (v) potential difficulties with employee retention and employee

relations; (vi) the trading price of Labcorp's stock, competitive actions

and other unforeseen changes and general uncertainties in the marketplace;

(vii) changes in government regulations; (viii) customer purchasing

decisions, including changes in payer regulations or policies; (ix) other

adverse actions of governmental and third-party payers; (x) changes in

testing guidelines or recommendations; (xi) the impact of global

geopolitical events; (xii) the effect of public opinion on each party's

reputation; (xiii) adverse results in material litigation matters, if

applicable; (xiv) the impact of changes in tax laws and regulations; (xv)

failure to maintain or develop customer relationships; (xvi) failure in

information technology, systems or data security; (xvii) personnel costs;

(xviii) inflation, and (xix) increased competition. These factors, in some

cases, have affected and in the future (together with other factors) could

affect Labcorp's ability to implement its business strategy, and actual

results could differ materially from those suggested by these

forward-looking statements. As a result, readers are cautioned not to place

undue reliance on any forward-looking statements.

Labcorp has no obligation to provide any updates to these forward-looking

statements even if its expectations change. All forward-looking statements

are expressly qualified in their entirety by this cautionary statement.

Further information on potential factors, risks and uncertainties that could

affect operating and financial results is included in the most recent Annual

Report on Form 10-K and subsequent Forms 10-Q, including in each case under

the heading RISK FACTORS, and in the other Labcorp filings with the SEC. The

information in this press release should be read in conjunction with a

review of Labcorp's filings with the SEC including the information in the

company's most recent Annual Report on Form 10-K, and subsequent Forms 10-Q,

under the heading MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS.

17.09.2024 CET/CEST Veröffentlichung einer Corporate News/Finanznachricht,

übermittelt durch EQS News - ein Service der EQS Group AG.

Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.

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Sprache: Deutsch

Unternehmen: SYNLAB AG

Moosacher Straße 88

80809 München

Deutschland

Telefon: +49 1701183753

E-Mail: ir@synlab.com

Internet: www.synlab.com/

ISIN: DE000A2TSL71

WKN: A2TSL7

Börsen: Freiverkehr in Hamburg

EQS News ID: 1989971

Ende der Mitteilung EQS News-Service

1989971 17.09.2024 CET/CEST

 ISIN  DE000A2TSL71

AXC0210 2024-09-17/16:01

Relevante Links: SYNLAB AG

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