The auction for Euromedic, the Hungarian healthcare group owned by Warburg Pincus, is through to the second round, with BC Partners, EQT, Merrill Lynch and Montagu Private Equity all through.
Their bids are reported to be in the region of €800m, which would make it the largest Hungarian private equity deal ever. 3i, Apax, Bridgepoint, Cinven and CVC Capital Partners all pulled out of the race after failing to match the bid.
Euromedic is the largest private provider of diagnostic imaging and haemodialysis treatment services in Central and Eastern Europe, with healthcare centers located in Poland, Hungary, Romania, Russia, Croatia, Bosnia-Herzegovina, Greece, Turkey and the Czech Republic. The majority of the company’s centers are located within, or adjacent to, public hospitals.
It was acquired by Warburg in July 2005 from Dresdner Kleinwort Capital and GE Equity. Last year it achieved revenues of €139m, with €28m EBITDA. For the coming year it predicts revenues will rise to €284m with EBITDA of €64m, and for the following year to €467m and €119m respectively, following a 64% EBITDA growth per annum between 2005 and 2007.