A couple of ASX 200 shares are catching the eye with acquisition announcements on Monday.
Let's now dig a little deeper into what they have announced:
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Capricorn Metals Ltd (ASX: CMM)
The first ASX 200 share that is making an acquisition is gold miner Capricorn Metals.
According to the release, the company has entered into an agreement with Latitude 66 Ltd (ASX: LAT) to acquire the prospective Sylvania Project tenements.
These tenements cover approximately 1,740 square kilometres of land located next to the company's Karlawinda Gold Project (KGP) tenure in the Pilbara region of Western Australia.
Capricorn Metals is paying $1.5 million for the tenements, which will be settled through the issue of shares. In addition, there is further consideration including the grant of a 1% net smelter royalty on the sale of all precious minerals and a 1.5% net smelter royalty in respect to the sale of non-precious minerals extracted from the Sylvania Project area.
Sonic Healthcare Ltd (ASX: SHL)
Another ASX 200 share that has announced an acquisition this morning is Sonic Healthcare.
The medical diagnostic services provider is paying out considerably more than Capricorn Metals is for its acquisition.
According to the release, Sonic Healthcare has signed binding agreements to acquire LADR – Laboratory Group Dr. Kramer & Colleagues for an enterprise value of 423 million euros (A$699 million). This comprises a maximum value equivalent to ~222 million euros in shares and the balance in cash
LADR is one of the top five medical laboratory groups in Germany. In 2024, its revenues are expected to be ~370 million euros (~A$610 million) with EBITDA of ~50 million euros (~A$82 million).
The release notes that transaction is expected to be immediately earnings per share (EPS) accretive, reaching high single-digit percentage accretion after three years (including synergies).
Management believes the return on invested capital (ROIC) will significantly exceed Sonic's cost of capital once synergies are achieved, with a ROIC in excess of 11% per annum expected after three years.
The ASX 200 share's CEO, Dr. Colin Goldschmidt, said:
The partnership between LADR and Sonic Healthcare Germany is an important and substantial step for Sonic in Germany and Europe. We are honoured and excited to commence our collaboration with the Dr. Kramer family and their many local colleagues, teams and partners.
Our closely aligned respective cultures, both based on a commitment to Medical Leadership and high-quality medicine, augur well for a successful integration which will further strengthen our service offering to clinicians and patients, and which will also enhance efficiencies in our operations. I warmly welcome the pathologists, clinicians and staff of LADR into the global Sonic Healthcare group.
