Dr Lal PathLabs is set to acquire Suburban Diagnostics in an all cash deal for Rs 925 crore. 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 is a strategic priority for LPL and 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 . Suburban has a network of 44 laboratories and diagnostics centres (one of which is CAP accredited and five are NABL accredited) and 150+ collection centres.

Revenues of Rs 294 Cr in FY 21 with EBITDA of Rs 57.5 crore. The acquisition is expected to be closed within one month.

According to Dr Om Manchanda, Managing Director, Dr Lal PathLabs, “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.”

As on March 31, 2021 Dr Lal PathLabs has 231 clinical laboratories (including National Reference Lab at Delhi & Regional Reference Lab at Kolkata), 3,705 Patient Service Centers (PSCs) and 9,247 Pick-up Points (PUPs). Their customers include individual patients, hospitals and other healthcare providers and corporate customers.

Dr Sanjay Arora, founder, Suburban Diagnostics 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.”