17 September 2010, Bucharest – Centrul Medical Unirea (CMU), a company controlled by Advent International, the global private equity firm, announced today that it has agreed to acquire Euroclinic Medical Centers (Euroclinic), the first private general hospital in Romania, from the insurance company Eureko. The value of the deal was undisclosed. The transaction is subject to Romanian Competition Council merger control approval.
Advent acquired an 80% stake in CMU in February 2010, with the aim of developing the company, through acquisitions and organically, into the market leader for high-end private medical services in the Romanian market. The acquisition of Euroclinic strategically complements CMU, adding a major hospital operation to CMU’s ambulatory and corporate pre-paid business.
Euroclinic operates one of the largest private hospitals in Romania and three medical centres, through which it provides premier medical services. Euroclinic has 325 employees and realised approximately €8 million in revenue in 2009.
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 hospital Regina Maria, and a surgery unit. In addition to CMU’s core business of corporate subscriptions and ambulatory and primary speciality care, the company has expanded its services to include imaging diagnostics (MRI, CT) and hospital treatments.
Emma Popa-Radu, Managing Director at Advent International, who led the investment, said:
“The purchase of Euroclinic is consistent with our strategy of building CMU into a market leader in the fast-growing hospital business in Romania. Euroclinic has a wealth of expertise in the Romanian hospital market, and we are confident that its management team and doctors will strengthen CMU as it grows in Bucharest and throughout the country. We will continue to support the accelerated organic growth of CMU and pursue other acquisition opportunities to complement CMU range of services and presence in the country.”
Wargha Enayati, CMU’s Executive Founder said:
“We are very happy to have reached an agreement with Eureko to make Euroclinic part of CMU group. We believe that the combined businesses will offer our subscribers and patients access to a unique network of high-end medical services, in both ambulatory and hospital areas. Euroclinic has an exceptional hospital business and we look forward to working with our new colleagues in raising the bar for quality and expertise in Romanian healthcare.”
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, the 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.
CMU retained RTPR Allen & Overy as legal adviser for the transaction.