Sonic Healthcare's strategic expansion

Sonic Healthcare (ASX:SHL) has announced the acquisition of LADR - Laboratory Group Dr. Kramer & Colleagues, a leading German laboratory group. The deal, valued at €423 million, will be paid through a mix of Sonic shares and cash. This acquisition is expected to be immediately accretive to Sonic's earnings per share.

Strategic acquisition overview

Sonic Healthcare has signed binding agreements to acquire LADR for €423 million, aiming to finalize the transaction by the first half of 2025, subject to customary conditions and antitrust clearance. LADR's projected 2024 revenues stand at approximately €370 million with an EBITDA of €50 million. The acquisition promises to be immediately accretive to Sonic's EPS and aims for a ROIC exceeding 11% after three years. Significant synergies are expected, especially in procurement, logistics, and specialized testing. The acquisition strengthens Sonic's European presence, aligning with its strategy of medical leadership and high-quality service. Key LADR executives will join Sonic, ensuring a smooth integration and continuity of leadership.

Executive insights on acquisition

We are excited to welcome LADR to the Sonic Healthcare family. The integration of LADR will enhance our service offerings and operational efficiencies in Germany and across Europe. Our shared commitment to medical leadership and quality service will drive growth and improved outcomes for clinicians and patients.