Pacific Equity Partners is understood to have fielded an offer from an infrastructure buyer keen to acquire its Evolution Healthcare business as it remains one of the top contenders to buy the Healthe Care acute care hospitals.
The understanding is that the competition for Healthe Care, which has 12 hospitals and a number of day surgeries, is shaping up as a shootout between private equity firms Crescent Capital and PEP, which has Macquarie Capital on board as its adviser.
PEP purchased Evolution Healthcare in March 2019, reportedly for about $300m, and such assets remain in strong demand among infrastructure funds searching for defensive earnings.
Morrison & Co is considered a logical acquirer given it purchased Australia’s Qscan Radiology Clinics for $735m last year.
Another infrastructure group buying healthcare assets is the Queensland Investment Corporation, which owns the Icon Cancer Care group.
A sale of Evolution was thought to be on the agenda for PEP this year.
The buyout fund describes the business as a leading provider of private hospitals and rehabilitation services in New Zealand and Australia, with the Wakefield Hospital in Wellington its most valuable asset.
China’s Luye Medical is selling Healthe Care’s acute care hospitals through investment bank JPMorgan to drive down its $800m-odd debt pile.
It is understood that PEP and Crescent made it through to the final stage of the contest with Healthscope owner Brookfield and not-for-profit provider Calvary Health Care.
However, Brookfield and Calvary are said to be off the pace in terms of price.
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