UK-based private equity firm Cinven has agreed to acquire French medical diagnostics provider Labco from a consortium of investors, for around €1.2bn.
Labco operates medical diagnostic laboratories in European nations such as France, Spain, Italy, Portugal, Belgium and the UK.
Labco CEO Philippe Charrier said: "Labco has generated significant growth across Europe, so it makes huge sense for us to partner with a private equity sponsor with a strong European presence, a proven track record in the healthcare sector, including diagnostics and the ability to help us expand our operations and services across Europe and internationally both organically and through acquisitions."
Founded in 2003, Labco operates a network of about 160 routine and specialist laboratories, in addition to 1,000 collection centres across seven European countries.
It also has a portfolio of hospital outsourcing contracts in Europe, offering services to both ambulatory care and hospitals.
Labco carries out clinical tests and provides results to prescribing doctors and patients, as well as helps in the interpretation of clinical results through in-house laboratory doctors.
Employing around 6,000 employees and medical personnel, Labco reported pro forma revenues of €650m in 2014.
Cinven partner Stuart McAlpine said: "The combination of Cinven’s European network in France, Spain and Italy, where Labco operates, together with its longstanding healthcare sector knowledge has enabled us to originate, evaluate and execute this exciting opportunity."
Image: Cinven has invested in medical diagnostic laboratories operator Labco. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.