BC Partners buys Medica from Bridgepoint
The European funds advised by BC Partners, alongside AXA Private Equity and the management of Médica, have signed an agreement to acquire 100% of the equity in Médica. The transaction, which values the group at €750 million, is expected to complete by the end of July, subject to approval by the European Competition Authorities.
Médica is a key player in the French market for temporary and permanent assisted accommodation. It is the market leader in France and Italy in two sectors:
- the medical/welfare sector through its nursing homes
- the healthcare sector, mainly through its convalescent and rehabilitation centres and psychiatric clinics
In 2005, Médica generated revenues of €272 million, up 17% on last year. Over 21,000 people were accommodated at the group's 103 centres in 2005 (92 in France and 11 in Italy). Médica employs more than 4,000 people.
Bridgepoint and Alpinvest originally acquired Médica from Icade in December 2003 in a transaction totalling €330 million.
During Bridgepoint and Alpinvest's investment, Médica has grown significantly. Its sales and marketing system was strengthened, new performance indicators implemented, under-performing centres turned around and acquisition-led growth accelerated.
BC Partners intends to actively support the group's growth strategy, both in France and Italy, by opening new centres and pursuing further acquisitions. The Médica management team will be led by Jacques Bailet, Chairman and CEO, and Christine Jeandel, Managing Director, both of whom have significant expertise in the healthcare services sector. Funds advised by BC Partners have previously invested in the healthcare sector, notably in Centro Medico Teknon Spain; Hirslanden Holdings in Switzerland; and General Healthcare Group in the UK.
Jacques Bailet, Médica's Chairman and CEO, commented: “I am delighted with the investment by BC Partners. I firmly believe they are the ideal partner to enable us to pursue our profitable growth strategy in France and elsewhere in Europe. The recent trend in the financial markets meant that conditions for an IPO were not ideal. BC Partners' investment is a great opportunity for the group.”
André François-Poncet, a partner with BC Partners, said: “Médica has a leading market position in France and Italy and enjoys excellent brand awareness. The outlook for the group is supported by the growing needs of an ageing population and the company has a highly regarded management team. We are extremely pleased with this investment and will be putting our expertise and resources behind Médica to accelerate the group's growth.”
Emmanuel Lejay, Axa Private Equity Investment Director said: “Médica is a growing company, managed by a highly skilled team. We are very pleased to be part of this investment together with BC Partners in line with our strategy of taking minority stakes in LBOs in France and abroad.”
Advisers on this transaction: BC Partners was advised by ABN AMRO and Rothschild (financial), White & Case (legal), PWC (audit), Landwell (tax) and Ariane Santé Social (strategy).
Bridgepoint was advised by Lazard and Société Générale (financial), Linklaters (legal), KPMG and LEK Consulting (vendor due diligence).
Médica was advised by Mayer Brown Row & Maw (legal).