Labco Announces Investment by European Private Equity Firm Cinven

Cinven cites strength of business and growth drivers in the Medical Diagnostic Market as key reasons for investment

Labco today announces that Cinven, a leading European private equity firm with extensive experience in investing in healthcare, has agreed to acquire a significant majority stake in the business.

Labco is one of the largest operators of medical diagnostic laboratories, in Europe, with more than 160 laboratories acquired in seven countries since it was established in 2003.

Cinven’s investment and sector experience will help Labco grow its businesses internationally by expanding operations and services across Europe and worldwide. With their demonstrable track record of commitment and success in backing similar growth strategies within the healthcare sector, Cinven represents a superb partner not only to broaden the geographic scope of the business but also to promote continued product development and operational excellence.

The management team will continue to be led by Philippe Charrier, CEO, along with Labco’s existing management teams.

Rothschild & Cie, Deutsche Bank, Morgan Stanley, Barclays, HSBC and Natixis have acted as advisors to Labco in connection with this transaction.

“We are very excited about the opportunity of working with Cinven, a solid partner who will give us the means to pursue the roll-out of our medical project based on technological innovation and operational excellence, across Europe and worldwide”, said Philippe Charrier, CEO.

He added, “Labco has generated significant growth across Europe, so it makes huge sense for us to partner with a private equity sponsor with a strong European presence, a proven track record in the healthcare sector, including through past investments in diagnostics. Cinven will have the ability to help us support the growth of our business and services internationally.”

“We would like to thank all our shareholders, and particularly 3i who through its investments in 2008 and 2009, its international network, and its continued support helped facilitate the internationalization of Labco.” 

Stuart McAlpine, Partner at Cinven, said:

“Labco is a high quality business with great people, products and services. As one of Europe’s largest operators of clinical labs, Labco has the scale to deliver both cost efficient routine testing and the full spectrum of specialist testing to its customers across its core markets and beyond. The diagnostics market benefits from growth trends driven by demographics, medical technology advances and increased hospital outsourcing. Cinven is investing in the management’s team’s strategy, and believes that Labco is a perfect platform from which to build an even more successful business both via organic growth and acquisitions.”

Cinven cites strength of business and growth drivers in the Medical Diagnostic Market as key reasons for investment

Labco today announces that Cinven, a leading European private equity firm with extensive experience in investing in healthcare, has agreed to acquire a significant majority stake in the business.

Labco is one of the largest operators of medical diagnostic laboratories, in Europe, with more than 160 laboratories acquired in seven countries since it was established in 2003.

Cinven’s investment and sector experience will help Labco grow its businesses internationally by expanding operations and services across Europe and worldwide. With their demonstrable track record of commitment and success in backing similar growth strategies within the healthcare sector, Cinven represents a superb partner not only to broaden the geographic scope of the business but also to promote continued product development and operational excellence.

The management team will continue to be led by Philippe Charrier, CEO, along with Labco’s existing management teams.

Rothschild & Cie, Deutsche Bank, Morgan Stanley, Barclays, HSBC and Natixis have acted as advisors to Labco in connection with this transaction.

“We are very excited about the opportunity of working with Cinven, a solid partner who will give us the means to pursue the roll-out of our medical project based on technological innovation and operational excellence, across Europe and worldwide”, said Philippe Charrier, CEO.

He added, “Labco has generated significant growth across Europe, so it makes huge sense for us to partner with a private equity sponsor with a strong European presence, a proven track record in the healthcare sector, including through past investments in diagnostics. Cinven will have the ability to help us support the growth of our business and services internationally.” 

“We would like to thank all our shareholders, and particularly 3i who through its investments in 2008 and 2009, its international network, and its continued support helped facilitate the internationalization of Labco.” 

Stuart McAlpine, Partner at Cinven, said:

“Labco is a high quality business with great people, products and services. As one of Europe’s largest operators of clinical labs, Labco has the scale to deliver both cost efficient routine testing and the full spectrum of specialist testing to its customers across its core markets and beyond. The diagnostics market benefits from growth trends driven by demographics, medical technology advances and increased hospital outsourcing. Cinven is investing in the management’s team’s strategy, and believes that Labco is a perfect platform from which to build an even more successful business both via organic growth and acquisitions.”

Article Date: May 2015