FRANKFURT, Oct 13 (Reuters) - German laboratory services
group Synlab is pushing ahead with preparations for a planned
stock market listing next year and has drafted banks to organise
the deal, people close to the matter said.
The company, owned by private equity group Cinven, has
mandated Goldman Sachs and JP Morgan as global
coordinators of the initial public offering, which could value
Synlab at 5 to 6 billion euros ($5.9-$7.1 billion).
Bank of America, Deutsche Bank, Barclays
, BNP Paribas, HSBC and Jefferies
will help in further roles, the people said.
Cinven and some of the banks declined to comment while
others and Synlab were not immediately available for comment.
Cinven bought Synlab for 1.7 billion euros from buyout firm
BC Partners in 2015 and then merged it with France-based Labco,
creating Europe's largest lab services provider handling about
500 million tests a year.
Although European lab operators, providing standard blood
and urine tests as well as other medical and veterinary
diagnostic services, have been consolidating to cut costs, the
industry remains fragmented as reimbursement rules differ across
the European Union.
Synlab last year reported adjusted earnings before interest,
tax, depreciation and amortization of 444 million euros on
revenues of 2.1 billion euros.
In the first half of 2020, Synlab's net loss widened to 12
million euros from 2 million euros in the year-earlier period as
fewer patients visited their doctors to undergo standard tests.
It also faced significant costs to expand its coronavirus
testing capacity and has struck deals with various European
countries to ramp up testing. Earlier this week, it announced
such a deal with the Netherlands.
Ratings agency Moody's in May changed its outlook for
Synlab's debt to negative, citing the negative impact of
operational disruptions triggered by the coronavirus outbreak.
($1 = 0.8496 euros)
(Additional reporting by Clara Denina; Editing by Douglas
Busvine and Emelia Sithole-Matarise)