The laboratory service provider SYNLAB separates from its activities in Switzerland.
The Munich-based company is selling its business there to its competitor Sonic Healthcare. Europe’s largest laboratory chain had grown through numerous takeovers in the past. However, the company is currently struggling with the waning Corona tailwind and is now reducing its debt with the sale. The transaction is also having a positive effect on profitability, as the company announced in Munich on Tuesday. According to its own announcement, Sydney-based Sonic Healthcare will pay 150 million Swiss francs (almost EUR 154 million).
A dealer spoke of a slightly positive message. In early trading, the SYNLAB share, which is listed in the index of smaller companies SDAX, rose by around one percent, but the price had already lost more than a fifth this year. In the further course, the papers are temporarily listed 1.64 percent higher at 9.01 euros.
Synlab investors have needed strong nerves for a long time. After the IPO in May 2021, the paper had risen by almost 40 percent within six months as part of the good business in the corona pandemic. From the high of EUR 25 in November of the same year, however, it then went down rapidly. In the summer of 2022, the paper managed to exceed the issue price of 18 euros again, but these times are long gone now, because Synlab recently sold fewer and fewer corona tests. The stock continued to fall after a profit warning last February. The price is currently quoted at just under 9 euros. Investors of the first hour are sitting on losses of around half.
After examining activities in Switzerland and developments in the diagnostics sector as a whole, the group decided to accept the offer from Sonic Healthcare, said Synlab boss Mathieu Floreani. According to its own information, Synlab has a total of 26 laboratories, blood collection points and administrative locations in Switzerland, which should achieve sales of around 50 million euros in the second half of the year.
Despite the sale, Synlab is sticking to the sales forecast of EUR 2.7 billion for the 2023 financial year, which was cut in February. The transaction will also have a positive effect on the adjusted Ebitda margin within the given forecast of 16 to 18 percent. The adjusted net debt will be reduced by around 154 million euros – in line with the takeover price quoted by the Australians.
Meanwhile, Jeffries analyst James Vane-Tempest noted that the agreement comes at a time when financial investor Cinven is still considering a possible complete takeover of the laboratory service provider. The major shareholder expressed his interest in the spring in view of the fall in the share price. There is speculation that he could potentially delist Synlab cheaply.
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MUNICH (dpa-AFX)
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