Sonic Healthcare: Expands Swiss footprint with bolt-on

About the author:

Dr Derek Jellinek
Author name:
By Dr Derek Jellinek
Job title:
Senior Analyst
Date posted:
28 June 2023, 7:00 AM
Sectors Covered:

  • 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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