Australia’s Healius to sell primary care business to BGH Capital for $342m

Stethoscope lying on medical records.

Australia’s Healius Ltd agreed on Monday to sell its primary care business, which includes large scale medical centres and dental practices, to funds managed by private equity firm BGH Capital for A$500 million ($342 million).

The deal comes just months after the medical centre operator turned down a A$2.12 billion offer from Swiss private equity firm Partners Group to acquire the whole company.

Healius said it will use around A$470 million in cash it receives after deal costs to strengthen the balance sheet and support growth in its pathology and images divisions. It added that proceeds may be deferred by A$75 million if earnings from dental clinics do not return to pre-COVID-19 levels by the deal’s completion, scheduled before the end of 2020.

Healius will retain its day hospitals, IVF business, pathology collection centres and imaging clinics.

In a trading update accompanying the deal announcement, Healius said its diagnostics businesses had “experienced good growth in activity” since mid-April as Australia began to emerge from a coronavirus lockdown.

“Dental and IVF are also moving back towards pre-COVID levels following the lifting of relevant clinical restrictions, Medical Centres has experienced strong revenues throughout the COVID period, underpinned by telehealth services,” it said.

Healius also said it has agreed to refinance its syndicated bank debt facility, increasing it to A$570 million and extending its maturity to January 2024.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.