Cinven to invest in Labco

European private equity firm Cinven has agreed to acquire Labco (‘the Group’), one of the largest European operators of medical diagnostic laboratories, from a consortium of investors, for an enterprise value of €1.2bn.   

The Group, headquartered in France, operates in France, Spain, Italy, Portugal, Belgium and the UK. The Group conducts clinical tests; delivers results to prescribing doctors and patients; and provides assistance with the interpretation of clinical results through in-house laboratory doctors. Labco also operates a large portfolio of hospital outsourcing contracts in Europe, providing services to both ambulatory care and hospitals. 

Established in 2003, Labco operates a network of more than 160 routine and specialist laboratories and over 1,000 collection centres across seven European countries. In the year to 31 December 2014, the Group generated pro forma revenues of circa €650 million. It employs more than 6,000 employees and medical personnel, who conduct over 150 million tests each year on circa 20 million patients.

Stuart McAlpine, Partner at Cinven, said: "The combination of Cinven’s European network in France, Spain and Italy, where Labco operates, together with its longstanding healthcare sector knowledge has enabled us to originate, evaluate and execute this exciting opportunity. Cinven’s investment in Labco builds on its already strong positions in both the healthcare sector, particularly in in-vitro diagnostics following its highly successful (and now realised) investments in Phadia and Sebia, and the French market."

Alex Leslie, Senior Principal at Cinven, added: “Cinven intend to grow Labco through further acquisitions, given the fragmented nature of the diagnostics laboratory sector, and international expansion across Europe and into emerging markets. We look forward to working with the team at Labco to achieve this.”

Labco represents the 12^th investment from Cinven’s Fifth Fund. Completion of the transaction is subject to customary regulatory approvals.