With 44 private hospitals spread throughout every Australian state and territory, Healthscope is the country’s second largest private healthcare provider behind Ramsay Health.
The big private hospital operator Healthscope has squeezed out of its two suitors, TPG and Carlyle, the biggest private equity takeover in more than four years. Healthscope announced yesterday that after an exhaustive three-month process it would recommend that shareholders accept a $6.26 a share cash offer worth $2.7 billion from the pair, representing a 16 per cent premium on the closing price of $5.40 on Friday.
John Durie: "The Healthscope deal makes more sense from the perspective of a private equity manager with the need to spend money than it does from a value perspective… It is the need for private equity managers to invest money at seemingly any cost to maximise their own fee earnings."
Healthscope is a leading private health care provider within Australia that uniquely operates in every State and Territory, as well as in Asia. Our reach of facilities around the country firmly places Healthscope as the second largest private hospital provider operating 44 private hospitals. The company includes a leadingpathology business with facilities in Australia, New Zealand, Singapore and Malaysia; a growing medical centres division with over 45 clinics; and a diagnostic imaging division centred in major hospitals
Texas Pacific Group (TPG) and the Carlyle Group are two of the world’s largest private equity firms, together managing over $US135 billion in equity capital. This is the largest private equity takeover of a publicly listed company in nearly four years
The takeover bid, pitched at $1.99 billion plus debt of $700 million, puts an enterprise value of $2.7 billion on Healthscope and is equivalent to a forward enterprise value/EBITDA multiple of roughly 10 times.