Some mergers and acquisitions may be hold for now as corporates take stock of the escalating war in Ukraine, but activity continues in the healthcare space.
Ramsay Healthcare’s investment Ramsay Sante has launched a bid for Swedish healthcare provider GHP Specialty Care, while GenesisCare hopes to find a buyer for its Australian cardiology operation.
Ramsay Sante is the second largest provider of private healthcare in Europe and Ramsay owns 52.79 per cent of the business.
It has bid to buy GHP through its subsidiary Capio, offering €228m cash, paying for the business through debt that is non-recourse to the Ramsay Healthcare headstock.
GHP operates 24 specialist clinics in a select number of diagnostic areas, including specialist competences in spine orthopaedics, gastro, surgery and arrhythmia.
In addition, it offers data-driven solutions to promote more cohesive whole of patient care.
The bid has undertakings from shareholders representing 51.4 per cent of the share capital and voting rights in GHP and the offer is conditional on Capio achieving more than 90 per cent of acceptances and regulatory clearances.
In Australia, cancer care provider GenesisCare is selling its cardiology unit through advisory firm Record Point and the unit is believed to be generating about $30m of earnings before interest, tax, depreciation and amortisation.
The division only accounts for a small proportion of GenesisCare’s overall earnings and comes as it remains keen to pay down debt and reinvest proceeds into its US-based operations where about half of its revenue is generated.
Market analysts say that the sale by GenesisCare is unsurprising, given that the group does not own capabilities for angiography x-ray related technology, which would aid it when it comes to ramping up revenue growth.
Potential buyers for the business that may sell for somewhere between $300m and $600m are mid-market private equity firms such as Crescent Capital, Adamantem Capital, Pacific Equity Partners or BGH Capital. I-Med, owned by private equity firm Permira, could also be a buyer.
Record Point has a history with the business, assisting on its refinancing around 2018.
At that time, it secured $650m from Kohlberg Kravis Roberts and $875m of Term Loan B debt as well as a $100m revolving credit facility around 2018.
KKR sold its stake of more than 40 per cent in GenesisCare during 2016 to China Resources, in a deal valuing the Dan Collins-founded business at $1.7bn.
The refinancing saw it return to the business as an owner.
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