CVC exits €5.8bn hospital operator

The UK buyout firm has sold Quironsalud, Spain’s largest private hospital operator, to German healthcare provider Fresenius.

CVC Capital Partners has sold Quironsalud, Spain’s largest private hospital operator, to German healthcare provider Fresenius for €5.76 billion.

“This acquisition combines two leaders in terms of quality and size. Our patients will benefit from the exchange of knowledge and ideas,” Stephan Sturm, chief executive of Fresenius said.

CVC declined to comment on the sale.

CVC formed Quironsalud last year when it bought Spanish operator Quiron from Doughty Hanson for €1.6 billion and merged it with IDCSalud, which it acquired from Swedish healthcare group Capio in 2011 for around €900 million. At the time Capio was owned by buyout houses Apax and Nordic Capital. Quironsalud runs 43 hospitals, 39 outpatient centres and around 300 occupational risk prevention centres across Spain.

The company has about 35,000 employees and says it expects sales of approximately €2.5 billion and EBITDA of €460 million to €480 million this year, with EBITDA growing to between €520 million and €550 million next year. The purchase price represents around a 10.8x multiple of EBITDA. Quironsalud’s chief executive and founder, Victor Madera, will join Fresenius after the transaction.

The exit is CVC’s second deal in the private hospital space in a week after the firm paid 2.2 trillion rupiah ($166 million; €148 million) to acquire a 15 percent stake in PT Siloam International Hospitals, Indonesia’s largest private hospital group.

Luxembourg-based CVC is currently investing CVC European Equity Partners VI, which it closed on €10.9 billion in June 2013.