Germany: Synlab begins pre-marketing for €400m IPO

Mathieu Floreani, CEO of Synlab Group

Synlab, Europe’s largest clinical laboratory and medical diagnostic services company aims to raise approximately €400m (US$475m) from a planned listing on the Frankfurt stock exchange. Pre-marketing began on Wednesday April 7 with a webcast.

The share offering will include newly created shares from a capital increase as well as a secondary component from existing shareholders. The secondary component will consist of funds advised by Cinven as well as those from Novo Holdings, Ontario Teachers’ Pension Plan Board and other minority shareholders. Proceeds from the IPO will be used to repay part of its outstanding debt obligations, resulting in a reduction of leverage.

“We have delivered a remarkable growth story over the past years. The planned IPO is a consequent next step for us to realise our full potential as a publicly listed company,” said Mathieu Floreani, CEO of Synlab Group.

Synlab is the largest European clinical laboratory and medical diagnostic services company by revenue and by number of tests performed. It has a network of 450 laboratories across 36 countries and processes approximately 500 million tests for around 100 million patients per year. It employs a staff of 20,000, which includes 1,200 medical doctors.

In 2020, group revenue reached more than €2.6bn and it expects revenues to grow by approximately 10 per cent per annum in the mid-term. Organic growth is predicted to contribute 3 per cent to revenue expansion, with M&A accounting for the remaining increase. In 2021, Synlab is targeting revenue to exceed €3bn.

Joint global coordinators and joint bookrunners are Goldman Sachs and JP Morgan. BofA Securities, Deutsche Bank, Barclays, BNP Paribas, HSBC, Jeffries and UniCredit are joint bookrunners. Credit Agricole CIB and Natixis are co-leads. Lija & Co is the independent advisor to shareholders and Synlab.

Listing is expected before end of June.