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Medicover buys majority stake in Romania's Spitalul Pelican
Medical services provider Medicover Group said on Tuesday it has signed an agreement to acquire a stake of 80% in Romanian healthcare services provider Spitalul Pelican for 23 million euro ($27.5 million), seenews.com informs.
Spitalul Pelican is based in Oradea, in northwestern Romania.
The acquisition will turn Medicover into the leading private provider in the region, with a total catchment area population of around 1.0 million, Medicover said in a press release.
The sale and purchase agreement is for an 80% stake of the hospital and clinical business of Pelican. The remaining minority shareholders are the founding surgeons who are active in the business and will continue.
"The acquisition of Pelican will significantly increase our footprint in the north-western part of Romania and the transaction is accretive and will create synergies both on the clinic, hospital and laboratory side. We will, through the acquisition, create a new platform for further growth," Medicover CEO Fredrik Rågmark said.
The sum which will be paid for the majority stake in Pelican includes the actual purchasing price, debt, transfer of certain assets and investment into operations. The transaction is pending approval from Romania's anti-trust body.
"We are delighted to join Medicover, whose belief in long term development of health services in Romania fits with our mission. We will together be able to further develop our infrastructure and services for the population in our region," one of the founders of Pelican, Dr. Cacuci, said.
Established in 1992 by leading surgeons, Pelican has a fully equipped hospital with 130 beds, five operating theatres, imaging diagnostics and supporting activities.
It posted a revenue of 15 million euro in 2017, with earnings before interest, taxes, depreciation and amortization (EBITDA) of 3.7 million euro.
Medicover Group is a private healthcare organisation in Central and Eastern Europe that employs 15,900 people in Belarus, Bulgaria, Georgia, Hungary, Germany, Moldova, Poland, Romania, Russia, Serbia, Sweden, Ukraine, Turkey and the UK.
In Romania, Medicover provides healthcare services to over 150,000 clients annually through its 27 clinics in 11 cities. It also operates a private hospital in Bucharest, in which it invested 20 million euro in 2012.