Global alternative asset manager The Carlyle Group (NASDAQ: CG) and Meinian Onehealth Healthcare Holdings Co., Ltd., have invested in Adicon Holding Limited, one of the largest independent clinical laboratory (ICL) companies in China. The Carlyle Group is now the single largest shareholder in Adicon Holding Limited.

Equity for the investment came from Carlyle Asia Partners V, Carlyle's US$6.55 billion fund focused on buyout and strategic investments across a range of sectors in Asia Pacific.

Established in 2004, Adicon operates 20 fully-owned diagnostic laboratories in China, offering diagnostic testing outsourcing services to more than 10,000 active customers, including hospitals, clinics and contract research organizations (CROs) in 28 provinces.

China's ICL industry is a fast-growing market, driven by growing healthcare expenditure, rising diagnostic demand, continued technology innovation and hospital cost control trends.

Ling Yang, managing director of the Carlyle Asia Buyout advisory team, says, "We are excited to have the opportunity to invest in Adicon. Adicon is a platform company, which taps into the sustained growth and innovation in China's healthcare market and helps the health system achieve cost savings. We have seen ICL leaders grow into substantial businesses in mature markets, and believe Adicon has similar potential. We look forward to working with our partners and the existing management team to build this company together."

The Carlyle Group has invested more than US$11.5 billion of equity in more than 65 transactions in the global healthcare industry as of June 30, 2018. In Asia, Carlyle has invested approximately US$1.5 billion in 10 healthcare companies.