VC Shop Eyeing Cerba European Lab Would Grow Clinical Pathology Business

By Kirell Lakhman

French private equity firm PAI Partners plans to buy a majority stake in Cerba European Lab for what could be $600 million, and would focus on expanding the lab's reach in the routine clinical pathology market.

CEL provides esoteric, routine, and central lab services in 34 locations in Europe, the US, South Africa, Australia, and, China. It generated around $305 million in revenue in 2010.

It employs approximately 1,300 people, including 85 clinical pathologists, and performs 85,000 tests daily.

In a statement, PAI Partners said it "will continue its strategy of internationalization of the central lab segment and reinforcing its positioning in France, Belgium," and elsewhere in Europe.

"In particular, the French routine clinical pathology market is at the dawn of a reorganization similar to that experienced in other European countries," the VC shop said. "CEL will actively participate in this restructuring, favoring an approach based on close collaboration with independent players in the sector."

The news service Financier Worldwide, citing "reports," said PAI "will now take advantage of a shift in French regulation, allowing Cerba to acquire smaller rivals in the clinical trials markets, which is highly fragmented in France."

Paris-based PAI Partners will buy the stake from IK Investment Partners, a European private equity firm. Financial details of the deal were not disclosed, but Washington G-2 Reports cites "industry sources" as saying the price could be $600 million.


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