Evolution Healthcare, iNova on the radar for sale or float in 2021

Sources say owner Pacific Equity Partners is likely to exit the Evolution Healthcare business in 2021, although there are no formal plans currently. Picture: iStock

As deal makers gear up for transactions in the new year, one company being closely watched is Evolution Healthcare.

Sources say owner Pacific Equity Partners is likely to exit the business in 2021, although there are no formal plans currently.

Pacific Equity Partners purchased Evolution Healthcare in March last year for a price thought to be about $300m.

The buyout fund describes the business as a leading provider of private hospitals and rehabilitation services in New Zealand and Australia.

Many believe that given the buoyant conditions of the Australian equities market, the private equity funds may opt to float the business, although it is understood that advisers are yet to be appointed.

A sale or float of the business is likely to be well received, given the strong appetite for healthcare investments in the market currently.

Another business that could be on the agenda for divestment late next year or more likely in 2022 is iNova Pharmaceuticals.

Pacific Equity Partners and The Carlyle Group bought the business for $930m in 2017 from US-based Valeant.

At that time, Goldman Sachs was selling the company.

INova markets a diversified portfolio of prescription and over-the-counter products in areas such as weight management, pain management, cardiology and cough and cold treatments.

It operates in more than 15 countries around the world and holds leading market positions in Australia and South Africa.

It also has an established platform in Asia.

The plan by the private equity funds at the time of buying the business was to invest in product development, geographical expansion, marketing, staff and potential acquisitions of additional brands.

Pacific Equity Partners and The Carlyle Group were at that time advised by Gilbert + Tobin, Allier Capital, Credit Suisse, Bank of America Merrill Lynch, UBS and Macquarie Bank.