Mid Europa Partners, focused on investments in Central and Eastern Europe and Turkey, announced Tuesday that it bought Regina Maria, but did not offer any information regarding the value of transaction. The takeover fully targeted the medical service operator, being acquired the 80% stake held by Advent International and the 20% stake of Regina Maria founder, doctor Wargha Enayati.
Contacted by MEDIAFAX, both Mid Europa and Advent International representatives declined to offer information regarding the transaction price.
However, people close to the deal told MEDIAFAX that the deal is worth EUR165 million. The transaction is pending antitrust clearance and is expected to be completed in the fourth quarter of 2015, Mid Europa Partners announced Tuesday.
Regina Maria has approximately 300,000 corporate subscriptions, 22 clinics, four hospitals, five medical imaging centers and 11 laboratories countrywide.
“Regina Maria has a rapidly growing corporate and private pay patient base serviced through a well-managed integrated platform providing national reach. We look forward to supporting the company through capital investments for organic and acquisitive growth,” said Nikolaus Bethlen, Mid Europa partner in charge with operations in Romania.
The transaction was executed by Csanad Daniel, Tas Tobias, Albert Jelinek and Bartosz Malecki from Mid Europa, with White & Case and Bondoc & Asociatii as legal advisers, Ernst&Young as financial adviser and Banca Comerciala Romana (Erste Group) as M&A adviser. Erste Group provided debt financing, acting as the sole underwriter of the acquisition facility.
Mid Europa had attempted to buy Regina Maria five years ago when the medical service provider, known as Centrul Medical Unirea at that time, was acquired by private equity firm Advent. Mid Europa Partners and Advent had taken part in the last stage of negotiations.
Mid Europa invests mostly in companies with turnover between EUR100 and EUR500 million, requiring capital investment of EUR75 – 200 million. Mid Europa usually acquires majority stakes, solely or jointly with other investors. Since its inception, in 1999, it has attracted and managed nearly EUR4.2 billion.
Regina Maria registered a net turnover of EUR55 million in 2014, up 19% on the year, while its EBITDA profit stood at EUR8.3 million. For 2015, the company expects its turnover to rise over 20% to EUR67 million and its EBITDA to reach EUR12 million.