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 €140 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 €2.64 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.