NEW YORK – Sonic Healthcare said recently that it will acquire the German firm Laboratory Group Dr. Kramer and Colleagues (LADR) for approximately €423 million ($444 million) to be paid through Sonic shares and cash.
Under the deal, Sydney, Australia-based Sonic said that it will issue to the sellers ordinary shares worth €222 million and it will fund the balance through existing cash and debt facilities. The deal is expected to close in the first half of 2025.
"Our closely aligned respective cultures, both based on a commitment to medical leadership and high-quality medicine, augur well for a successful integration which will further strengthen our service offering to clinicians and patients and which will also enhance efficiencies in our operations," Sonic CEO Colin Goldschmidt said in a statement.
Sonic said that the acquisition is expected to be immediately accretive to earnings per share and the contribution to EPS is expected to reach the high-single digits after three years. The firm said it anticipates synergies between the organizations in procurement, laboratory overlap, specialized testing, logistics, equipment maintenance, and the supply and distribution of consumables.
Sonic noted that LADR reported full-year 2024 revenues of €370 million. About 80 percent of its revenue and 90 percent of net income is from the firm's medical laboratories while the rest of revenues come from medical supplies trading, logistics services, and a women's health-focused clinical services division.
LADR has about 2,800 full-time equivalent staff, and it operates primarily in Germany, although the firm also is the majority owner of a lab in Poland and it has a joint venture interest in Finland.
Sonic noted that LADR also owns a 15 percent interest in a separate German medical lab business, and that Sonic will inherit options to acquire the remaining 85 percent of equity in the group. Sonic said that it will likely acquire the balance in a deal that is expected to be worth about €55 million by 2027.