Sonic Healthcare: Expands Swiss footprint with bolt-on

About the author:

Author name:

By Dr Derek Jellinek

Job title:

Senior Analyst

Date posted:

28 June 2023, 7:00 AM

Sectors Covered:

Healthcare

• Sonic Healthcare (ASX:SHL) is acquiring Switzerland-based Synlab Suisse for CHF150m (cA$250m) funded via existing CHF cash and debt.
• Synlab Suisse employs c600 staff across 19 laboratories, offers the full range of routine and specialty laboratory testing and has an estimated annual turnover of cCHF100m (cA$165m).
• Swiss regulators have greenlighted the deal (closing 3 Jul-23), with the transaction expected to be EPS and ROIC accretive from CY24 and within two years, respectively, with improved return metrics expected post-synergies.
• We have adjusted FY24-25 estimates, with our target price increasing to (login to view). Add rating maintained.

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