Euromedic International

In September 2008, Montagu Private Equity successfully completed its €70 million co-investment in the leveraged buyout of Euromedic International - the largest Pan-European operator of healthcare services such as diagnostic imaging, renal care and dialysis, clinical laboratory and radiotherapy services. Montagu invested alongside Merrill Lynch Global Private Equity ("MLGPE"), Ares Life Sciences, a specialist healthcare investment venture backed by former executives of the Swiss biotechnology business, Serono, and the management of the company.

Euromedic, founded in 1991 in Hungary, operated, at the time of the transaction, 156 centres located in 14 countries across both Central/Eastern Europe ("CEE") as well as Western European markets. In total it had 4,500 employees including more than 1,000 medical doctors. As a leading player in a growing market, the business had a strong track record of profitable growth and benefited from the growing demand for healthcare services across Europe and the trend towards more privatised and decentralised healthcare provision. Euromedic achieved growth through a combination of same centre (like-for-like) growth, opening of new centres and value accretive acquisitions of local players, taking benefit of a highly fragmented market structure. In the period 2005-2008, revenue CAGR exceeded 68%, with 2008 revenues reaching €277 million.

Montagu had been tracking the company for some time before the transaction and actively participated in the sale process, working with the incumbent management, before deciding to join forces with the consortium of MLGPE and Ares Life Sciences. Montagu was delighted to have made its first investment in the CEE region in a business exhibiting strong visibility and recurring nature of cash flows, operating in a high-growth sector with defensive characteristics.