PRIVATE equity firm Cinven yesterday bought medical diagnostics company Labco from a group of investors including 3i in a deal valuing the French business at €1.2bn (£857m).
Labco, which was considering a stock market flotation, was established in 2003 and has offices across Europe including in the UK. It tests samples and delivers the results to doctors and patients.
3i, led by chief executive Simon Borrows, bought a minority interest in the company in 2008 and helped support the firm during 130 takeovers during its seven-year investment period.
“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,” Cinven partner Stuart McAlpine said.
Cinven will be hoping the clinical diagnostics sector, worth €75bn, continues to grow, given Europe’s ageing population and the growth of private hospital referrals.
Labco, which employs 6,000 people in total, had revenues of about €650m last year.