Cinven €1.75 billion acquisition of 70% in Synlab

Overview:

• UK private equity firm Cinven acquired a 70% stake in German laboratory operator Synlab for €1.75 billion from BC Partners. 
• Cinven financed the deal through bond issues of €675 million, €200 million, €475 million and €375 million.
• Goldman Sachs International, JP Morgan Securities, Barclays Bank, Deutsche Bank, BNP Paribas, HSBC Bank, and Morgan Stanley arranged the bond issues. 
• The UK investor intends to merge Synlab with European medical device company, Labco, which it acquired a majoritystake in from a group of investors  mid-2015 for an enterprise value of €1.2 billion. 
• For BC partners, the sale represents a return of around 2.7 times on its investment in Synlab. 
• BC Partners acquired 40% of Synlab in 2009, gradually increasing its stake in the business to a majority. 
• The financial advisers on the deal were Rothschild (Synlab) and Barclays (Cinven).

Ben Naylor - Regional Editor