Intermediate Capital has surfaced as a bidder for Healius’ day surgery unit, which is now for sale through Gresham.
ICG is a London-based listed private equity firm with offices in 13 countries.
Bids are due in about three weeks for the Healius business, which some estimate will sell for up to $200m.
ICG will compete with Ramsay Health Care and Queensland Investment Corporation, which owns Nexus Day Hospitals. Medibank may also take a look, along with other private equity funds. Fresenius, which owns Cura Day, and Alceon’s Specialist Medical Services are expected to be bidders.
ICG is familiar with the day surgery space in Australia, having sold a 70 per cent interest in Cura Day – Australia’s largest day surgery owner with 19 assets – to Fresenius Medical Care during 2017.
The price valued the business at more than $400m.
Healius purchased the Montserrat group of seven day surgeries in 2018 for $138.5m.
The Australian-listed healthcare company is a major player in a fragmented industry, and the business has experienced strong growth since its acquisition.
Healius operates in day hospitals, pathology and radiology.
At its half-year results in February, executives said they wanted to invest in digital applications to improve service.
For the six months to December, the Healius day centre unit generated $8.4m of earnings before interest, tax, depreciation and amortisation, down 19 per cent on the previous corresponding period.
Analysts at Credit Suisse earlier believed that the business would sell for about eight times its forecast earnings before interest, tax, depreciation and amortisation for the 2023 financial year.
The deal comes after GenesisCare finalised a sale of its cardiology unit last week to Adamantem Capital.
The private equity firm had carried out due diligence on the business since May.
It is understood to have paid between $200m and $250m.
GenesisCare was advised by Record Point, Morgan Stanley, PwC and law firm Herbert Smith Freehills.
Adamantem was advised by Grant Samuel, EY, Gilbert + Tobin and Skye Capital.
Add your comment to this story
Battle heats up for boardroom control over Aussie-listed NZME
NZME directors are now speaking out about concerns voiced by shareholders about the poor performance of the New Zealand broadcaster and publisher of The New Zealand Herald.
Korean group raids Austal shares in bid to gain major stake
Advisory firm Jarden has been tapped to buy an initial 9.9 per cent interest in the Australian-listed ship builder.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout