17 February 2010, Bucharest - Advent International, the global private equity firm, announced today that it has agreed to acquire a majority stake in Centrul Medical Unirea (CMU), a leading chain of medical clinics in Romania, from the private equity company 3i and the founders of the business. The value of the deal was undisclosed. The transaction is subject to Romanian Competition Council merger control approval.
CMU provides ambulatory and inpatient medical services through a network of 19 clinics (11 in Bucharest and eight clinics in four other large cities), the maternity Regina Maria, and a surgery unit.
CMU was founded in 1995 by Dr. Wargha Enayati, a German born cardiologist. It has since built a reputable business providing medical services to companies for their employees and to fee-for-service patients. The range of services provided expanded continuously. In addition to corporate subscriptions and ambulatory primary and specialty care, this now includes imaging diagnostics (MRI, CT), stem cells bank and hospital treatments. CMU estimates revenues of €21 million for 2010.
Emma Popa-Radu, Managing Director at Advent International, who led the investment, said:
“We regard CMU as a solid platform for expansion at a national level in the fast-growing private medical services market. We will continue to support the development that the Executive Founder, Dr. Wargha Enayati, and his management team have planned in order to drive growth across ambulatory and hospital units. We are also pursuing add-on acquisitions, consistent with our strategy of buy-and-build in fragmented industries.”
“We plan to draw upon our significant resources and expertise from our international investments in healthcare services in order to support the accelerated growth of CMU.”
Advent International has been investing in the healthcare sector for over 25 years and has invested in more than 30 healthcare companies worldwide in a broad range of sub-sectors, including pharmaceuticals, healthcare services and medical devices. Investments in healthcare services in particular include MEDIAN Kliniken, a leading rehabilitation care provider in Germany, Craegmoor Healthcare, UK’s largest independent provider of specialist care for adults and Casa Reha, a leading nursing home group in Germany.
Wargha Enayati, CMU’s Executive Founder said:
“We have admired Advent International’s professional approach for some time and are excited by the prospect of working alongside them. Advent’s healthcare sector expertise coupled with its capability to rapidly deploy resources locally will be extremely valuable as we continue to integrate new acquisitions, open ambulatory and hospital units and launch new medical services. We are confident that CMU will receive strong support from Advent as we continue to expand.”
RTPR Allen & Overy was legal adviser to Advent International and Ernst & Young was financial and tax adviser.