Liquidity Events
Dr Lal PathLabs to acquire Suburban Diagnostics for about Rs.1,000-Cr
Publicly-listed diagnostic and related healthcare services provider Dr. Lal PathLabs Limited (LPL) is to acquire 100% equity of Mumbai-based Suburban Diagnostics (India) Private Limited in an all cash deal at an enterprise value of 18.5x of FY22 audited EBITDA subject to a floor of INR. 925 crore and a cap of INR 1,150 Crores. The deal shall be funded through the existing cash reserves of LPL. Dr Sanjay Arora, Founder of Suburban Diagnostics, shall join LPL as Group Medical Director. The acquisition will strengthen the LPL's presence in the western part of the country with access to 44 laboratories and diagnostics centres (one of which is CAP accredited and five are NABL accredited) and 150+ collection centres. Ernst & Young acted as Financial Advisors and L&L Partners (formerly, Luthra & Luthra, Law offices) acted as Legal Advisors to LPL; Avendus Capital and Candle Partners acted as Financial Advisors and Phoenix Legal acted as legal advisors to Suburban Diagnostics. Suburban Diagnostics had reported revenues of INR 294 crore for FY21 and an EBITDA of INR 57.5 crore.
From the Venture Intelligence PE-VC Deal Database: Between Oct-12 and Apr-16, Sequoia Capital India had invested over INR 80 crore in Suburban Diagnostics (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)
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