Cinven is reviewing strategic options for laboratory-services company Synlab International GmbH including a potential sale, people with knowledge of the matter said.
The private equity firm has been speaking with potential advisers and could start a sale process early next year, the people said, asking not to be identified because the information is private. Cinven plans to seek a valuation of about 5.5 billion euros ($6 billion) including debt for Augsburg, Germany-based Synlab, one of the people said.
A sale of Synlab would likely attract other private equity firms, the people said. No final decision has been made, and Cinven could elect to keep the business, the people said. A spokeswoman for Cinven declined to comment, while Synlab didn’t answer phone calls seeking comment.
Cinven first invested in Synlab in June 2015, buying a majority stake from fellow private equity firm BC Partners for about 1.7 billion euros, Bloomberg News reported at the time. It combined the business with Labco SA, which it agreed to buy earlier that year for 1.2 billion euros.
Synlab, led by Chief Executive Officer Mathieu Floreani, also counts Novo A/S and Ontario Teachers’ Pension Plan as minority investors, according to its website. It operates across more than 40 countries, handling more than 500 million clinical tests annually, according to Synlab’s website.
Cinven also owns stakes in retailer Kurt Geiger and German drugmaker Stada Arzneimittel AG, according to its website.
The sale plan comes at a time when Cinven’s rival Apax Partners is also weighing a sale of diagnostic services business Unilabs. The buyout firm is working with advisers at Rothschild & Co. to look at options for the business, people familiar with the matter said last week.
Source: Bloomberg
Can’t stop reading? Read more
The bidding war continues: Bain Capital matches CC Capital’s $1.92bn offer for Insignia Financial
Bain Capital re-entered the bidding war for Insignia Financial, matching CC Capital Partners’ revised offer of $1.92bn (AUD3.07bn). Bain’s proposal values Insignia’s shares at AUD4.43 each, a 3.8% premium over the previous closing price and a 7% increase from its...
Kim Kardashian’s Skky Partners acquires minority stake in UK-based skincare brand
SKKY Partners, the consumer-focused private equity firm co-founded by Kim Kardashian and Jay Sammons, made a “significant” minority investment in luxury skincare brand 111Skin. This investment aims to support 111Skin's expansion of its direct-to-consumer operations....
Calpine’s $16.4bn sale highlights growing role of mega-exits in private equity
The $16.4bn sale of Calpine Corp to Constellation Energy underscores the rising significance of mega-exits in private equity. This landmark deal, which provides a 4x return for its owners—Energy Capital Partners (ECP), CPP Investments, and Access Industries—is among...