Creating a healthcare leader

CVC Capital Partners’ Grupo Sanitario IDC, the largest privately owned healthcare group in Spain, is merging with Sweden-based Capio in a €331m transaction that includes €291m in cash. The move will create a leading private care provider in the European market, with annual revenues of more than €1.2bn on an annualised basis.

Capio has signed an agreement to acquire 100% of IDC, which is headquartered in Madrid. Payment is through €291m in cash and 4.3m new shares. The cash portion will be financed through loans and reserves built up from non-core operations in 2004.

All of the current owners have decided to accept the share offering. IDC’s president and founder, Victor Madera, will continue as president and vice-chairman of the company. He will become a member of Capio’s group executive committee.

“We will benefit from economies of scale and the transfer of medical knowledge between the two companies,” said Per Batelson, president and chief executive of Capio.