Ramsey Health Care purchases Capio AB

Source: Business Sale

Date :10/09/2007 17:19:42

Ramsay Health Care Limited has agreed to acquire Capio AB’s market-leading UK operations for £193 million ($474 million).

The attainment of Capio UK is a landmark transaction for Ramsay, which will provide entry into a market with significant growth upside due to a shift towards outsourcing National Health Service services to the private sector, Business Sale reports.

Capio UK is the fourth-largest operator of private hospitals in the UK, operating 22 hospitals throughout England together with nine Independent Sector Treatment Centres which service contracted NHS patients.

Ramsay Managing Director Pat Grier said: “Capio UK is a quality business which provides Ramsay with a strong foundation to begin realising its offshore expansion plans.

“We believe Capio UK is a sound strategic acquisition that will allow us to export our hospital expertise to a market with similar dynamics to Australia.

“The UK hospital market is going through a period of fundamental change and now allows public patients to choose whether they want to go to a private or public hospital.

“This acquisition allows us to achieve critical mass throughout the UK in a market offering good growth prospects.”

Funded by debt, ANZ and NAB have underwritten a fully committed debt package of around $2 billion which will be used to refinance existing facilities and fund brownfields capital expenditure, while retaining significant flexibility for further acquisitions and brownfields expansions.

The acquisition is expected to be positive to Core EPS in the second full year as the benefits of the shift towards outsourcing NHS to the private sector are felt.

It is expected to close in the second quarter of the financial year in 2008, subject to closing conditions, including regulatory and government approvals and consents.

September 10 2007