PAI exits Cerba Healthcare in sale to Partners Group

Alice Tchernookova
23 January 2017

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PAI Partners has agreed to sell French clinical pathology laboratories operator Cerba Healtchare to Partners Group and Canadian pension fund Public Sector Pensions Investments (PSP Investments).

Although the value has not been confirmed by the GP, several sources report a €1.8-1.9bn valuation for Cerba in the deal, representing 12x the company's EBITDA. The value is significantly higher than in the previous deal, in which the group had been valued at around €500m.

PAI is exiting the group after a six-year holding period, during which PAI supported the group's expansion into new areas of activity, including the clinical pathology industry and the veterinary sector, and worked on the group's scientific development.

According to a source close to the deal, Apax France, through its portfolio company Unilabs, was also a "serious contender" in what was a "competitive process", unquote" understands. Previous bidders also included Cinven – owner of sector competitors Synlab and Labco – several sources report.

According to unquote" sister site Mergermarket, PSP Investments was initially bidding jointly with TowerBrook, which did not make it through to the second round.

The group's turnover nearly tripled with PAI's support, having increased from €250m in 2009 (with a €52m EBITDA) to €605m in 2015, according to the GP. Several sources report the group's current turnover at €650m.

Having expanded in North Africa and the Middle East, the group will pursue its international expansion. With PAI's backing, the group completed around 10 bolt-ons, including France-based groups Katterhil, Jsbio and Novecia.

PAI declined to comment on returns generated with the sale.

Previous funding
In 2010, PAI acquired a majority stake in Cerba European Lab from IK Investment Partners. The deal value remained undisclosed but reports suggested it was valued at around €500m, equating to 10x the company's EBITDA of €52m at the time.

In 2006, IK had acquired a majority stake in Cerba from Astorg Partners for approximately €160m. Astorg had been the majority owner in the group since 2002, when it acquired the group for an estimated €75m. Astorg itself took over from Ixen Partners and Initiative & Finance, which had taken a majority stake in 1998 for €15.14m, according to unquote" data.

Company
Founded in 1967, Cerba is a French clinical pathology laboratories operator.

Its service covers routine medical biology, mainly in France, Belgium and Luxembourg; specialised medical biology; and clinical trial biology, serving the development of new molecules by the pharmaceutical and biotechnology industry. The group recently diversified into the veterinary biology market by creating Cerba Vet.

Cerba currently employs 4,200 people, including 350 biologists. Its consolidated turnover in 2015 was €605m, according to PAI. According to several sources, the group's turnover currently amounts to €650m and its consolidated EBITDA to around €150m.

People
PAI Partners – Frédéric Stévenin (partner).

Advisers
Equity – JP Morgan (M&A); Natixis (corporate finance).