Dr Lal PathLabs acquires Suburban Diagnostics

Dr Sanjay Arora, Founder of Suburban Diagnostics to join Lal Path as Group Medical Director

Dr Lal PathLabs Limited (LPL) will acquire 100% equity of Suburban Diagnostics (India) Private Limited in an all-cash deal for an enterprise value of 18.5x of FY22 audited EBITDA subject to a floor of Rs. 925 Cr. and a cap of Rs 1,150 Cr. The deal shall be funded through the existing cash reserves of LPL. Dr Sanjay Arora, Founder of Suburban Diagnostics will join LPL as Group Medical Director.

Western India Region is a strategic priority for LPL. Suburban Diagnostics is a platform acquisition for LPL. A platform to leverage Suburban’s strong consumer and medical brand recognition, wide network and professional management team to further accelerate its growth trajectory

Access to 44 laboratories and diagnostics centres (one of which is CAP accredited and five are NABL accredited) and 150+ collection centres. The acquisition is expected to be closed within one month. Ernst & Young acted as Financial Advisors and L&L Partners (formerly, Luthra & Luthra, Law offices) acted as Legal Advisors to LPL; Avendus Capital & Candle Partners acted as Financial Advisors and Phoenix Legal acted as legal advisors to Suburban Diagnostics.

Dr Om Manchanda, Managing Director, Dr Lal PathLabs Limited said, “Suburban Diagnostics transaction is in line with our stated strategy of driving growth through inorganic route especially in West and South regions. This transaction has a strategic significance for us from a long term stand point.”

Dr Arvind Lal, Executive Chairman, Dr Lal PathLabs Limited said, “Our joining hands with Suburban Diagnostics is a significant step in LPL’s endeavor to expand our footprint in Western India. I am confident that our combined strengths and a similar DNA of both the companies- led by doctor promoters, will lead to new heights in serving our customers across Western India.”

Dr Sanjay Arora, Founder, Suburban Diagnostics (India) Private Limited said, “One of my missions has been to unburden healthcare and add value to medical outcomes. By coming together with DLPL, I will get the right platform to make this impact at a national level. The core of any healthcare organization is to add medical value while continuing to drive good governance and positive commercial success. As a medical professional, I will be able to concentrate on adding value to medical outcomes. This association with DLPL allows us to play to our strengths while continuing to add value to society.”

acquisitionDr Lal Path LabsSuburban Diagnostics
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