Sonic Healthcare (SHL.ASX) announced that they’re acquiring German Staber Lab Group for €120m or approximately AUD$175m. The deal will be funded by debt and cash on hand.
Sonic indicated that Staber revenue is around €80m or AUD115m and will be 4% earnings accretive in FY17. The market should view this transaction positively.
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FY17 growth consensus for Sonic is 5%+ with a forward yield into FY17 of 4.4%.
We have been recent buyers of SHL on the pullback as indicated by the algorithm signal posted on last week’s blog.
