Private Equity Firm Cinven Acquires Labco

European private equity firm Cinven announced Thursday the acquisition of French-based Labco, a European operator of medical diagnostics laboratories, in a deal valued at $1.32 billion.

Labco was founded in 2003 and generated more than $714 million in revenue last year while employing more than 6,000 people. It has operations in France, Spain, Italy, Portugal, Belgium and the UK.

The purchase of Labco was based on the group’s track record, including such factors as:

• Demonstrated strong market fundamentals;
• Diversification;
• Medical leadership in specialty areas;
• Strong financial performance; and
• Opportunity to further consolidate the fragmented European diagnostics laboratory market.

The EU clinical diagnostics sector is estimated to be worth over $82 billion. — Jason Scott