The global mergers and acquisitions (M&A) market for labs is off to a strong start in 2008. “Over the past few years, we’ve typically seen four to seven M&A transactions during the first quarter, and the first quarter of 2008 has had seven—four clinical chemistry and three esoteric testing focused transactions valued at nearly $38 million,” said Michael Guerrero of Crosstree Capital Partners Inc. (Tampa, Fla.). “The amount of activity seems to be on track for another 30 to 40 transactions for the year despite the current economic climate.”

The biggest acquisitions thus far in 2008 include Sonic Healthcare’s (Australia) purchase of American Clinical Services Inc. (Lyndhurst, N.J.) for $26 million. Guerrero also noted that in early March, private equity firms Kleiner, Perkins, Caufield & Byers (Menlo Park, Calif.), Versant Ventures (Menlo Park), and Texas Pacific Group Growth (Ft. Worth, Tex.) invested $11.9 million in cancer diagnostic startup Calderome Inc., (Menlo Park), which he considers an acquisition. Also of note, although not included in the M&A volume and valuation, is the $16 million investment into Laboratory Partners Inc. (Louisville, Ky.) by its private equity firm owners Chrysalis Ventures Inc. (Cincinnati) and Fort Washington Capital Partners Group (Cincinnati), according to Crosstree’s data.

For more on 2008 M&A activity in the lab industry, read the May issue of Laboratory Industry Report.