Archer Capital sells Healthe Care

The Australian firm has sold Healthe Care to China’s Luye Medical Group for $700 million and reportedly acquired a stake in New Zealand Pharmaceuticals.

Australia’s Archer Capital has sold private hospital operator Healthe Care Australia to China’s Luye Medical Group, according to a joint statement.

The value of the transaction, which is expected to close in the first quarter of 2016, was not disclosed but it is reportedly about $700 million.

Archer acquired Healthe Care for A$240 million through Archer Capital Fund IV, from Australia’s Champ Ventures, according to reports. Fund IV is a 2011, A$1.5 billion vehicle.

Through its investment in Healthe Care, Luye will enhance and improve access to private healthcare services for Australians and the group has the capital and commitment to fund the expansion of its hospitals, said Luye Group chairman Liu Dian Bo.

Healthe Care is the third largest corporate private hospital operator in Australia and operates a portfolio of 17 hospital sites located in major cities and key regional areas across Australia. The company has over 1,800 beds, more than 50 operating theatres and 4,500 employees.

Luye Medical is a division of Luye Group, which was founded in 1994. It owns a network of healthcare service facilities across major cities in China, focusing on key therapeutic areas including rehabilitation nursing, plastic surgery, postpartum nursing, geriatric medicine and dentistry.

Luye Group has a significant shareholding in Hong Kong listed Luye Pharma Group Ltd, a leading specialty pharmaceutical company in China.

The announcement comes just days after Archer reportedly bought a stake in drug company New Zealand Pharmaceuticals. (NZP) in which New Zealand’s Direct Capital owns a 51 percent stake. The transaction was for about NZ$200 million ($132 million; €122 million), according to reports.

It is understood that Archer will inject further capital into NZP to enable the company to expand its product range.

In November Archer acquired five New Zealand based private education businesses, which together is called Aspire2, through Archer Capital Fund V, which closed at A$1.5 billion in 2012.