Based in Sydney, Sonic Healthcare Limited is an Australian company that provides laboratory, pathology and radiology services.It is the largest medical laboratory provider in Australasia and Europe, and the third largest in the US. As part of the S&P/ASX 50, along with CSL Limited, Cochlear, and ResMed, it is one of our largest listed medical companies.
“SHL is acquiring Switzerland-based Synlab Suisse for 150 million swiss francs (A$250 million approx) funded via existing cash and debt,” Raymond said.
“Synlab Suisse employs around 600 staff across 19 laboratories, offers the full range of routine and specialty laboratory testing and has an estimated annual turnover of around 100 million swiss francs (A$165 million).
“Swiss regulators have greenlighted the deal (closing 31 July this year), with the transaction expected to be earnings per share (EPS) and return on invested capital (ROIC) accretive from calendar year 2024 and within two years, respectively, with improved return metrics expected post-synergies.
“We have adjusted financial year 2024-2025 estimates, with our target price increasing to A$38.96 (from A$38.47).
“Our Add rating is maintained,” Raymond said.
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