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Brussels clears purchase of 25 Spanish hospitals by CVC

The European Commission has authorised the private equity firm to buy Swedish healthcare group Capio’s Spanish division in a deal that could be worth up to €900m.

The European Commission (EC) has given the green light for private equity firm CVC Capital Partners to acquire Capio Sanidad, the Spanish division of healthcare firm Capio, in a deal that could be worth up to €900 million.
 
The EC said in a note today that it “has granted clearance to the acquisition by CVC European Equity Fund V of sole control of Capio Sanidad”. CVC did not wish to comment on the transaction. A spokesman from Capio Sanidad told Infrastructure Investor that the EC's approval is “a step, a process, but not the closing of the acquisition”. 

Spanish hospitals:
approved for acquisition
by CVC 

CVC has been in the market raising its debut, €2 billion infrastructure fund – expected to announce a first close early in 2011 – for nearly two years. But the EC’s note indicates Capio is set to be acquired by one of the investor’s private equity funds, the €11 billion CVC European Equity Fund V.
 
Capio Sanidad, which manages 25 hospitals across the country, is part of the larger Swedish healthcare group, owned by private equity funds Apax Partners and Nordic Capital. 
 
BNP Paribas, JP Morgan and Unicredit are said to be working on a debt package of €655 million to back CVC’s purchase, breaking down into €575 million of term loans and €80 million of revolving credit and capex facilities, Dow Jones reported earlier in January.
 
If CVC acquired Capio Sanidad for €900 million, a price widely reported in the media, the latter would be equivalent to 10x Capio Sanidad’s earnings before interest, tax, depreciation and amortisation (EBITDA).
 
Capio states on its website that it is the largest private healthcare operator in Spain with over €556 million in sales. It employs more than 4,500 employees and manages hospitals in Madrid, Barcelona and Toledo, to name a few of the cities it operates in. Its facilities include more than 1,500 beds.