Investindustrial, the private equity house investing across southern Europe, has backed Italian laboratory diagnostics services operator Lifebrain.
The firm has taken a 96 per cent stake in the group, investing from its Investindustrial VI L.P. fund.
Lifebrain has revenues in excess of €100m and provides routine and specialty laboratory tests. It runs 220 laboratories across Italy, performing more than 20 million tests annually and serving more than 200 health care facilities.
Michael Havel founded the company in 2013 and will stay on as chief executive following the deal. Co-founder Bernhard Auer will remain as chief financial officer.
Invesindustrial sees opportunities for further consolidation within the Italian testing market and scope for expansion outside Italy too.
“The laboratory diagnostic services market presents significant opportunities for further consolidation especially in Italy in which lifebrain will play a leading role,” Investindustrial’s head Andrea Bonomi, a recent inductee into the Private Equity Hall of Fame, said.
The laboratory and testing sector has proven a fruitful hunting ground for private equity investors. Deals include Cinven’s investment in Synlab, which it acquired from BC Partners in 2015, while Apax Partners has backed Unilabs, which it bough out from consortium of private equity investors.
Investindustrial was advised by Studio Legale Chiomenti, PwC, Boston Consulting Group and JP Morgan. Unicredit, Natixis and Raiffeisen Bank provided a finance package for the transaction.