Synlab is planning a stock market flotation for 2021: Reuters

German laboratory services provider Synlab is considering an initial public offering (IPO) in 2021, people familiar with the matter told Reuters.

According to the sources, the company has appointed Goldman Sachs and JPMorgan as joint book running managers for the deal, with Bank of America, Deutsche Bank, Barclays, BNP Paribas, HSBC and Jefferies also participating in the transaction.

Synlab is hoping to fetch a total valuation of EUR 5.00 billion to EUR 6.00 billion, the insiders noted, asking not to be named as the situation is still private.

The company is currently owned by private equity firm Cinven, which paid EUR 1.70 billion to pick up the business from BC Partners in 2015 before merging the company with Labco to create one of Europe’s biggest lab services providers, handling over 500.00 million tests a year.

Synlab offers the full range of innovative and reliable medical diagnostics for patients, practising doctors, clinics and the pharmaceutical industry.

The group ranks number one to three in every key market and therefore claims to be the undisputed European market leader in the field of laboratory services, with strong revenue, cash flow and high margins.

Some of Synlab’s offerings include standard blood and urine tests, as well as medical and veterinary diagnostics services.

Last year, the group posted adjusted earnings before interest, taxes, depreciation and amortisation of EUR 444.00 million on revenue of EUR 2.10 billion.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 117 IPOs by Western European companies announced in 2020 to date.

In the largest of these, German energy company Siemens Energy is seeking EUR 5.50 billion in proceeds through a listing on the Frankfurt Stock Exchange.

JDE Peet’s, THG Holdings, Royalty Pharma, GVS and LINK Mobility Group Holding, among others, have also announced plans to go public this year.

© Zephus Ltd