Sonic Healthcare Acquires Second California Laboratory
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Sonic Healthcare Limited (“Sonic”) (SHL.AX) is pleased to announce that it has acquired the laboratory business of Central Coast Pathology Consultants (“CCPC”), a high quality laboratory in California.
The CCPC transaction follows on from Sonic’s recently announced acquisition of Physician’s Automated Laboratory (“PAL”) based in Bakersfield, California.
CCPC was founded in 1983 by a group of pathologists and initially provided anatomical pathology services, adding clinical laboratory services from 2004. CCPC is based in San Luis Obispo, approximately mid-way between Los Angeles and San Francisco and 200km due west of Bakersfield. CCPC provides services in the San Luis Obispo, Santa Barbara and Ventura areas and has revenues of over US$20 million per annum.
The pathologists and management of CCPC are highly experienced and bring to Sonic a further wealth of knowledge of the Californian market. The management teams of both laboratories will remain in place under a unified organizational structure and Sonic will look to expand further in California, both via organic growth and through further synergistic acquisitions.
The (debt free) purchase price for CCPC is expected to equate to an FY2012 EBITDA (post synergies) multiple of ~6 times, after allowing for the net present value of tax deductions for goodwill amortization. The acquisition has been funded in U.S. dollars from Sonic’s existing debt facilities and is immediately earnings per share accretive.
Crosstree Capital Partners, Inc. acted as exclusive financial advisor to Central Coast Pathology Consultants, Inc. in the transaction.
For further information regarding this announcement, please contact:
Dr Colin Goldschmidt
CEO and Managing Director
+61 2 9855 5333
Mr Paul Alexander
Group Financial Controller/Company Secretary
+61 2 9855 5404
Sonic Healthcare Limited
ABN 24 004 196 909
14 Giffnock Avenue
NSW 2113, Australia
Locked Bag 145
Telephone (02) 98 555 444
Fax (02) 9878 5066