Financial details were not disclosed, but a source familiar with the matter said the value of the transaction was more than €650 million, generating a 2x return for Bridgepoint, which acquired Terveystalo in 2009 for €312 million. Terveystalo provides occupational health and primary healthcare services including surgery and bills itself as the largest healthcare service company in Finland.
Bridgepoint declined to comment, while EQT did not respond to a request for comment at press time.
During the holding period, Bridgepoint invested €160 million in the group’s clinic network, IT infrastructure and service delivery, including €120 million to fund three strategic acquisitions and 12 add-on acquisitions. Terveystalo’s earnings before interest, tax, depreciation and amortisation more than doubled under Bridgepoint’s ownership, growing to €52.3 million in 2012. Revenues in 2012 were €455 million.
EQT is investing from its €4.82 billion Fund VI, a 2011 vintage.
The sale of Terveystalo will bring total cash proceeds realised from Bridgepoint portfolios in the year to approximately €1.5 billion, according to a statement.
Last month, Bridgepoint secured an investment extension for its €4.84 billion Bridgepoint Europe IV fund, a 2008 vintage this fund. The firm sought the fund extension after it became apparent it would not need to fund as many add-on acquisitions as initially planned, Private Equity International reported in June.
Fund IV has a portfolio of 19 companies, which have made 54 add-on acquisitions totalling €750 million. Because only four add-ons required equity – some €130 million – Bridgepoint decided to increase the proportion of the fund allocated to primary investments to between 90 percent and 95 percent, instead of the originally planned 85 percent. After securing the extension, it is understood Bridgepoint planned to make an additional four to five primary investments from this vehicle.
Last week, Bridgepoint agreed to acquire AHT Cooling, an Austrian manufacturer of commercial plug-in refrigeration equipment, from Quadriga Capital and Partners Group for €585 million. It is understood that following that acquisition, Bridgepoint’s €4.84 billion Bridgepoint Europe IV fund will be more than 80 percent deployed.
Market sources expect the firm to raise a successor fund sometime next year, PEI reported in July.