Private equity firm, Cinven, has made a move to buy out the remaining shares of the Germany-based diagnostics company, Synlab, valuing the company at €2.24 billion ($2.37 billion).
The UK-based equity firm has long since owned 43% of the firm but seeks now to acquire the remainder of its shares, offering €10 a share.
As part of the deal, key shareholders Novo Holdings and Ontario Teachers’ Pension Plan Board, have signed irrevocable undertakings to sell their shares to Cinven, alongside the members of the Management Board.
This price represents a 23% premium to Synlab’s closing share price on Thursday and a 42% premium compared with its latest price before Cinven expressed its interest in March.
A spokesperson for Synlab said: “The SYNLAB Management Board and Supervisory Board know Cinven well as a trusted and supportive long-standing shareholder and anticipate a good further cooperation.”
Synlab added that whilst it considers that the proposed offer may provide a potentially attractive exit opportunity for short-term oriented or risk-averse investors, it does not consider the offer price to reflect the long-term value of the company.
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The bid comes alongside a number of interested parties after Cinven approached the management board of Synlab in March of 2023. The deal also includes support for growth across Synlab’s premises in Germany and France, as well as providing external financial benefits.
Additionally, Dr Bartholomäus Wimmer, the founder of SYNLAB, has also signed an irrevocable agreement to sell 60% of his shares and to re-invest his remaining shares.
The spokesperson for Synlab added: “The Management Board and Supervisory Board have approved the signing of the investment agreement backing the long-term strategy of the Company and are comfortable with Cinven’s intended Offer that is also made on the basis of the investment agreement.
“Both will carefully review the offer document following its publication and will then issue their reasoned statement on the adequacy of the Offer.”
Cinven is set to publish the offer document in due course, following approval by the German Federal Financial Supervisory Authority, but expects little delay with the deal.