Trilantic Capital Partners Europe Invests In Maugeri, Leading Italian Non-Acute Private Hospital Operator
24 February 2016 – Trilantic Capital Partners Europe (“Trilantic Europe”) has entered into an agreement with Fondazione Salvatore Maugeri (“FSM”) to make an initial investment of €66 million in the company to finance both organic and inorganic growth projects.
As part of the transaction, FSM, a leading Italian operator of private hospitals, will transfer all its operations to a new company (Istituti Clinici Scientifici Maugeri S.p.A., “Maugeri”). Trilantic Europe will invest in Maugeri through a €66 million capital investment and initially will own c. 34% of Maugeri, and FSM will own the remaining c. 66%. Trilantic Europe also has an option to increase its investment to a total of c. €100m, with a subsequent increase of its participation in Maugeri to c. 43%.
The transaction allows Trilantic Europe to invest in a company with predictable cash flow generation, which has an excellent reputation, and which operates in a regulated industry with stable volumes and revenues. The Italian healthcare sector is highly fragmented, with high barriers to entry and high demand, driven by the country’s ageing population and the increasing market share of non-acute hospitals.
The transaction represents Trilantic Europe’s third investment in the healthcare sector.
Vittorio Pignatti Morano, Chairman of Trilantic Europe, said: “Maugeri is one of the leaders in Italy in non-acute private hospital services and exemplifies the excellence of the Italian healthcare system. Trilantic Europe has invested in the company with the aim of benefitting from growth opportunities in a highly fragmented sector. This investment consolidates our strong focus in the healthcare industry, following the investments in Mediclinic, a hospital operator, and, more recently, in Doppel Farmaceutici, a pharmaceuticals producer.”
Professor Gualtiero Brugger, Chairman of FSM, said: “The agreement with Trilantic Europe is especially important because it will boost the expansion of Maugeri, including through potential acquisitions. Indeed, the Italian private healthcare sector is affected by difficulties that can only be overcome by seizing the opportunities created by economies of scale and scope, increasing the ability to renew and strengthen capital structures and making investments.”
The proposed transaction is subject to certain condition precedents, including the authorisation from certain Italian regional authorities of the transfer of all the operations from FSM to Maugeri.
Fondazione Salvatore Maugeri
FSM is an Italian research hospital group providing diagnostic and therapeutic services with a specific focus on non-acute, rehabilitation, working environment medicine and chronic diseases. In particular, it specialises in heart, neuromuscular and respiratory diseases. In addition, FSM conducts scientific and biomedical research.
FSM operates 19 non-acute hospitals in Lombardy, Piedmont, Liguria, Campania, Apulia, and Sicily, and has 3,600 employees, including nearly 650 doctors and researchers. FSM has approximately 2,250 beds and in 2014 generated €300 million in revenues.
Trilantic Capital Partners Europe
Trilantic Europe is a private equity firm focused on control and co-control investments in Western Europe. Trilantic Europe employs flexible transaction structures and has a strong heritage of partnering with family-owned businesses as well as providing growth capital to outstanding management teams. Trilantic Europe is differentiated from its competition by the firm’s history of disciplined, successful investing, the demonstrated capability to supply flexible and growth capital and to be true partners with the management of our portfolio companies. The firm often applies a “buy in” not “buy out” approach and is determined to deliver value both to the Limited Partners and the management teams that it supports. Trilantic Europe’s primary investment focus is in the consumer & leisure, industrials, TMT, business services and pharmaceutical/ healthcare sectors.
Trilantic Europe currently manages two institutional private equity funds with approximately
€1.5 billion in assets under management.
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