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Quirónsalud, the leading private healthcare operator in Spain, was sold by CVC in February 2017 generating proceeds for ICG Enterprise of £5.9 million.
|ICG Enterprise exit value||£5.9m|
|Uplift to carrying value||65%|
|Underlying manager||CVC Capital|
|Date realised||February 2017|
|Portfolio||High conviction (secondary ) and third party funds|
Quirónsalud is the leading private healthcare operator in Spain, with a nationwide portfolio of 84 hospitals and medical centres and a total staff of 35,000. ICG Enterprise invested in the business in March 2011 through its commitment to CVC European Equity Partners V.
Growth in healthcare expenditure is expected to continue to be fuelled by favourable trends such as a growing, ageing population. With well-invested hospitals in key regional markets, as well as better efficiency ratings and service levels than publicly funded facilities, Quirónsalud had demonstrated strong performance being well positioned to win new public auctions and to continue to consolidate the industry through acquisitions. Further, CVC had previously invested in the business between 1998 and 2005, and expected the company to benefit from regulatory changes implemented in the Madrid region in December 2010.
In 2014, Quirónsalud acquired Grupo Hospitalario Quirón, the leading private hospital in Spain focused on the insurance funded and self-pay segments of the market. As a result of the transaction, Quirónsalud became the clear leader in the Spanish hospital sector and the company continued to execute smaller add-ons to reinforce its private business in targeted regions.
In February 2017, Quirónsalud was sold to Fresenius Helios, Europe’s largest private hospital operator. The sale generated a return of 4.4 times the original investment cost, equivalent to an annualised return of 34%. The cash proceeds to ICG Enterprise of £5.9 million represented an uplift of approximately 65% to the July 2016 valuation.