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DOUGHTY HANSON TO ACQUIRE USP HOSPITALES FOR €355 MILLION.
Doughty Hanson & Co, one of the largest independent private equity firms in Europe, today announced that it has agreed to acquire USP Hospitales (“USP”), the Spanish hospitals operator, from Barclays and Royal Bank of Scotland for €355m which represents a 9x multiple of forecast 2012 EBITDA.
Other private equity firms (private equity) as Blackstone and PAI also submitted bids earlier this week to acquire USP, in conjunction with companies in the health sector (see news).
USP Hospitales is the third largest private hospital operator in Spain, with a market share of 5.5% in 2010, and it is focused on the provision of hospital services to the private insurance and self-pay segments. USP operates 12 hospitals, 1 specialist clinic and 22 auxiliary clinics, with a total of over 1,200 beds.
It is present in 9 out of Spain’s 17 regions and has a strong presence in Barcelona, Madrid and Seville. USP offers a comprehensive range of services covering all medical specialties, with a particular strength in trauma, gynaecology, oncology, cardiology, neurosurgery and internal medicine.
Francisco Gutiérrez Churtichaga, Senior Principal for Doughty Hanson, said “USP is a strong company operating in an attractive sector. With demand for private healthcare services growing strongly in Spain, we not only see significant potential for future growth but also believe that the company offers a unique platform from which to create a larger hospital group providing the right combination of technology and premises to deliver the best possible care to the private patient. Doughty Hanson has a proven track record of value creation in the healthcare sector and this will be invaluable in helping USP to achieve its full potential”.
This investment builds on Doughty Hanson’s expertise in the private healthcare sector, following its investment in Priory. At the time of the acquisition, in June 2002, it was the largest independent provider of mental health and rehabilitation services in the UK. Under Doughty Hanson's ownership it had a national presence with over 42 locations, over 2,000 beds and nearly 4,500 staff. Priory was sold in July 2005 in a transaction valued at £875m and delivered a 3.9 times return on capital invested.
Doughty Hanson still has a majority stake in the road transport group Avanza, in which entered in 2007, and since months ago in divestment process.
Rothschild advised Doughty Hanson on the transaction, which is subject to the usual regulatory requirements and is expected to close in late March 2012.