Sonic Healthcare announces the acquisition of the Diagnosticum

Sonic Healthcare Limited (ASX: SHL) announced the signing of formal agreements to purchase the Diagnosticum group of labs, one of the major clinical and anatomical pathology laboratory companies operating in the South East of Germany, near Dresden.

The acquisition price of €190 million will be ffunded with the company's present cash and debt facilities, with the majority of the price being deducted from taxes in Germany over 15 years as goodwill amortisation. The purchase is instantly EPS accretive, and Sonic's return on invested capital (ROIC) will surpass its cost of capital. EPS and ROIC accretion will rise when considerable efficiencies in infrastructure and operations are realised.

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