News Releases

The Doctors Healthcare Group (TDHG), the UK's largest private pathology operator, has been purchased for £65 million by Sonic Healthcare Limited (Sonic), as part of the quoted Australian company's global expansion. The deal means an exit for Barclays Private Equity which backed the public to private management buy-out of TDHG in December 2000.

Barclays Private Equity originally invested c.£20 million in a debt free deal to fund the buy-out and help grow the business both organically and by acquisition. Mark Taylor and Nathan Elstub managed the investment and sale for Barclays Private Equity and report a good return on the company's investment.

The Doctors Healthcare Group was formed in 1988 and now has an annual turnover of £20 million and has achieved a compound annual growth in revenues of 25 per cent over several years.

Dr Ray Prudo, Chairman, Doctor's Healthcare Group commented "We were looking for a trade partner with a similar culture to ours, which could help us reach the next level in our market. Sonic, with its focus on medical management and experience with industry consolidation, satisfies our criteria for a growth partner. We are looking forward to working with Sonic in order to expand our services more broadly both in the UK and across Europe."

Dr Colin Goldschmidt, Managing Director, Sonic, is keen to use this as an opportunity to play a major role in the changing healthcare markets in the UK and Europe. "TDHG is an exceptional practice with a very talented management team. We have investigated a number of possibilities in this part of the world but felt that this venture will provide us with the best opportunities."

"Whilst our initial investment was made just 15 months ago, the Government's plans to restructure the UK pathology market has attracted major overseas players. The deal with Sonic will enable TDHG to help retain its market leading position and provide opportunities for further growth and we are delighted with the return on our investment", said Mark Taylor, Director, Barclays Private Equity.

Note to News Editors:
Barclays Private Equity is a division of Barclays Capital, the investment banking division of the Barclays Group. With more than 300 transactions to its name, Barclays Private Equity is one of the leading private equity providers in the UK and across Europe.

The Doctors Healthcare Group plc has grown from a diagnostics laboratory business into an integrated healthcare group with approximately 250 employees, benefiting from cross selling opportunities between the testing services, laboratory management, laboratory automation hardware sales, laboratory management software sales and support and consulting services divisions of the business. The company is headquartered in Wimpole Street, London W1 and also has facilities in New Cavendish Street - W1, Devonshire Street - W1, Park Royal Industrial Estate - NW10 and Egham - Surrey.

Sonic is a substantial pathology business based in Sydney, Australia, and was listed on the Australian Stock Exchange in 1987. It currently has a market capitalisation of approximately AUD$1.9 billion.