Australia's Sonic buys German laboratory group

Sydney, Aug 13: Sonic Healthcare Ltd., Australia's top medical testing group, said on Monday it has agreed to buy German medical laboratory group Bioscientia Healthcare, extending its global reach.

Sonic said the purchase price is based on an enterprise value of 190 million euros (0 million). The acquisition will be immediately earnings per share accretive.

While other Australian healthcare companies are embroiled in a flurry of domestic takeover activity, Sonic has been chasing overseas opportunities, especially in North America and Europe.

Earlier this month, Sonic reached an agreement to buy out minority interests in its own German laboratory business. In July it agreed to buy U.S.-based Sunrise Medical Laboratories Inc. for up to US8 million. The company also has operations in Australia, New Zealand, the United Kingdom and Switzerland.

''Bioscientia will add critical mass and enormous value to Sonic, as well as provide the potential for significant synergy within the German laboratory market,'' Sonic Managing Director Colin Goldschmidt said in a statement.

Sonic said Bioscientia runs 15 laboratories across Germany and several laboratories within hospitals. It employs over 1,000 staff and has annual revenues of around 125 million euros.

The acquisition will be funded initially by a bridge debt facility in euros. Sonic is also considering a capital raising.

Settlement is conditional on German antitrust approval and is expected to take place by October 2007.

REUTERS >