Labco announces acquisitions in three countries, accelerating its European expansion

08-01-2008: Labco announced that it has made a series of acquisitions in Europe cementing its position in the European diagnostics market. These acquisitions follow the company's successful EUR728 million financing announced last week. Atlas Capital acted as corporate financial advisors to Labco.

Sampletest, a player in the Iberian clinical diagnostics market, posted a turnover of EUR80 million in 2007, has 950 employees and 511 clinical sites across Spain and Portugal. This acquisition, together with the integration of General Lab in 2007, makes Labco Iberia's largest clinical diagnostics company, according to the company.

In Germany, Labco acquired four regional laboratories located in the Saarland, Ruhrgebiet and Hessen areas which have combined sales of over EUR40 million.

In Italy, following the integration of a key laboratory in Milan last year, Labco has now acquired a diagnostic centre in Liguria with sales of EUR10 million.

Following these acquisitions the enlarged company will have a pro-forma turnover of EUR400 million, generated by 250 laboratories spanning 6 countries across Europe. With further acquisitions planned throughout Europe later this year, Labco expects to achieve a turnover of over EUR450 million by the end of 2008, more than double that in 2007.

Dr Eric Souêtre, Co-founder and CEO of Labco commented: "I am pleased that our unique business model and our ambitious strategy have attracted additional partners that have a solid combination of managerial and medical skills. For example, Sampletest's management team has a strong growth track record in Iberia and we look forward to working with them to provide quality diagnostic services to patients. These acquisitions illustrate our strong commitment to growth as we are quickly gaining the scale and critical mass to be the true leader in the fast growing market for clinical diagnostic services"