The purchase price for Clinical Laboratories of Hawaii (CLH) of $121 million equates to a prospective EBITDA (post synergies) multiple of approximately 6.2 times, after allowing for the net present value of tax deductions for goodwill amortization over 15 years of $19 million. Approximately $3 million of the purchase price is subject to earn-out arrangements.
Settlement of the transaction is expected by September 2008, conditional upon US anti-trust approval and other statutory notifications to the State of Hawaii.
Dr Park will stay on as a consultant with CLH and the current CEO, Ms Alyssa Park, will remain in place. CLH will join the Sonic Healthcare USA management structure as a new division within the US ‘federation’ of laboratories.
Colin Goldschmidt, Sonic Healthcare’s CEO and managing director, said: “The acquisition of Clinical Laboratories of Hawaii further expands Sonic’s footprint in the US laboratory market place, and offers synergies with our existing operations in terms of purchasing, esoteric testing and sharing of best practice systems and laboratory protocols.”