News 2006
General Healthcare Group acquired from BC Partners by consortium led by Netcare for £2.35 billion
BC Partners announced today that funds advised by BC Partners have sold General Healthcare Group, a leading provider of independent health care services throughout the UK, for a consideration of £2.35 billion to a consortium led by Netcare of South Africa. Other members of the consortium include: Apax, the private equity firm; London & Regional, the property company; and Brockton Capital, the recently formed real estate fund. Netcare, which will have a majority interest in GHG, is listed on the Johannesburg Securities Exchange (JSE) and has grown from four hospitals at listing in 1996 to a current total of 71 hospitals owned and managed by the group.
Simon Palley, Managing Partner of BC Partners in London, said: “General Healthcare Group is a first rate business and we are very proud of what has been achieved since BC Partners acquired the group in September, 2000. Profits have increased every year since we became owners of the company. We have invested heavily in developing the business with the acquisition of three hospitals and the construction of a new hospital on a greenfield site in Coventry. We wish the company and all its employees every success under its new owners.”
The transaction is believed to be the largest ever deal in the European health care services sector. It is the biggest deal in ten years in the global health care services sector.
BC Partners was advised on the transaction by N M Rothschild; Netcare was advised by DrKW; and Apax was advised by UBS.
For further information:
Cardew Group for BC Partners
Richard Spiegelberg/Eden
Mendel - Tel: +44 20 7930 0777
BC Partners
BC Partners is a leading pan-European private equity
firm, operating through integrated teams based in Geneva, Hamburg,
London, Milan and Paris. The latest fund BC European Capital VIII
closed in May 2005 with over €5.7bn of commitments and is
one of the largest European buy-out funds to date. Over 17 years
the firm has developed a long track record of successfully acquiring
and developing European businesses in partnership with management,
investing in 60 acquisitions with a combined enterprise value of
EUR 42.7 billion. Recent investments include the following: Hyatt
Regency Hotels & Tourism (51.57 % for € 477 million),
Fitness First (UK, £835m), Amadeus (Spain, €4.6bn),
Dometic (Sweden, €1.1bn), Picard (France, €1.3bn) and
Baxi (UK, €984m).
Netcare
Netcare is listed on the Johannesburg Securities
Exchange (JSE) and has grown from four hospitals at listing 1996
to a current total of 71 hospitals owned and managed by the group.
Turnover has grown concomitantly, reaching R 7.5 billion for the
financial year ending September 2005. Netcare’s facilities
comprise 9,285 beds, 358 operating theatres, 82 pharmacies and
61 specialised medical units and are supported by over 2,500 medical
specialists. The group also owns and manages Medicross, comprising
53 multi-disciplinary Medicross Family Medical and Dental Centres
around South Africa serviced by 325 general practitioners and 153
dentists. Complemented by 43 pharmacies and 36 administered practices
(representing a further 114 general practitioners), the Medicross
centres provide primary healthcare services to approximately 5.8
million patients a year.
General Healthcare
Group General Healthcare Group is the largest
private acute care hospital provider in the UK. In 2005, the group
achieved turnover of £609m and EBITDA of £153m. BMI Healthcare
is the acute hospital division of General Healthcare Group and is
the largest independent provider in the UK, with 49 acute care private
patient hospitals throughout the United Kingdom with 2,476 beds,
handling over 240,000 inpatient and 750,000 out-patient visits each
year. Over half the procedures undertaken for patients are of a major
or complex nature.