NEW YORK – Laboratory Corporation of America said Tuesday that it is acquiring a 15 percent indirect minority stake in European diagnostics and testing outfit SYNLAB from private equity firm Cinven for roughly €140 million ($190 million).
Labcorp will acquire the indirect minority stake through an intermediate holding company established to hold the investment with SYNLAB and will be represented on the holding company's board along with Cinven and the other co-investors.
Operating in more than 30 countries, SYNLAB performed roughly 600 million tests in 2023, generating revenues of €2.64 billion.
“Our investment in SYNLAB as a minority shareholder provides Labcorp with a role on the co-investors’ holding company board and the commitment to explore possible opportunities in the future to bring Labcorp’s innovative specialty tests to markets in Europe, consider possible procurement collaborations, evaluate opportunities to support advances in clinical trials and enrollment and improve personalized care,” Labcorp CFO Glenn Eisenberg said in a statement.
Separately, Labcorp said Monday that it has priced an offering of $2.0 billion in senior notes.
The offering consists of three tranches: $650 million at 4.35 percent senior notes due in 2030, $500 million at 4.55 percent senior notes due in 2032, and $850 million at 4.80 percent senior notes due in 2034.
The offering is expected to close on Sept. 23, subject to the satisfaction of customary closing conditions, and the notes will pay interest on a semiannual basis.
Labcorp said it plans to use the funds to pay outstanding debts including $400 million of senior notes due Dec. 1, 2024, $1.0 billion of senior notes due Feb. 1, 2025, and $350 million borrowed under its revolving credit facility. It will also use the funds for general corporate purposes.
The joint bookrunning managers and representatives for the offering are BofA Securities, US Bancorp, and Wells Fargo Securities.