Ramsay outbid for Inicea’s French mental health care assets

It is understood that Ramsay was only just beaten in the bidding for Inicea’s assets by Korian, which offered €360m ($590m) compared to Ramsay’s €350m.

Ramsay Health Care has missed out on the acquisition of Inicea’s French mental health care assets after they were last week offloaded to Korian, a French nursing home group.

It is understood that Ramsay was only just beaten by Korian, which offered €360m ($590m) compared to Ramsay’s €350m.

Still, some say that Ramsay may have dodged a bullet because the assets were too expensive.

It leaves Ramsay in a position to focus on the sale of Qscan, which Quadrant Private Equity is selling through Stanton Road Partners and Citic-CLSA.

There’s also Priory, a British mental health care business that is up for sale.

Priory is well-known for its flagship Roehampton Hospital in London, which treats high-profile celebrities.

The overall company is expected to be worth more than $2bn, but analysts predict that Ramsay has about $2bn of firepower for acquisitions.

The sales process for Qscan, meanwhile, is nearing competition, with suggestions that it is likely to reach a conclusion around the middle of this month.

The length of the contracts is expected to be a key issue for Ramsay in the process for the Qscan radiology sale.

They are currently locked in for about 10 to 15 years.

Also competing for the radiology provider are private equity firm Permira, which owns one of the country’s largest radiology providers, I-Med Radiology, Queensland Investment Corporation and Morrison & Co, which is advised by E&P Corporate Advisory.

Ramsay is believed to be working with Macquarie Capital.

Prospective buyers are being told that Qscan generates about $50m of annual earnings before interest, tax, depreciation and amortisation.

They’re told this could increase to $80m and then $90m in the next two years.

Most of its operations are in NSW and Queensland, with a number in regional locations.

Radiology providers used to sell for between eight and 10 times earnings, but expectations are now between 10 and 12 times, and some estimate the business could be sold for about $700m.

Qscan describes itself as a leading diagnostic imaging provider, operating at least 70 clinics with more than 100 radiologists and 730 staff.

Radiology is seen as a solid performer, and is more lucrative if the service providers are co-located with hospitals.

Quadrant invested in Qscan in June 2017, along with North Coast Radiology, reportedly valuing the operations at $200m.