CapMan nears 3x return on healthcare company

The exit of healthcare services company Curato comes as CapMan seeks €400m for its Fund X, which has collected about €206m.

Finland-headquartered CapMan will sell healthcare services company Curato to Altor Equity Partners, generating a return multiple of between 2.5x and 3x, according to a source close to the transaction.

CapMan declined to disclose a deal value for the deal.

Curato provides medical radiology services in Norway to regional health authorities, health insurance and private individuals and generated sales of approximately €53 million in 2012. CapMan initiated a structured sale process for the company in early 2013, attracting both private equity players and strategic buyers. The transaction is expected to close by the end of October 2013, according to a statement. 

“The acquisition of the Telemark Røntgen group in 2007 and the merger with Sentrum Røntgeninstitutt in 2008 made the basis for the new company with an unmatched geographical coverage and market position in Norway,” Hans Tindlund, a partner at CapMan Buyout, said. 

The cost of radiology services is significantly lower in Norway than in other Nordic or European countries, and far lower when performed by Curato than in the public domain in Norway, Reynir Indahl, a partner at Altor Equity Partners, said in the statement.  

“We therefore believe that private players will increase their share of radiology services going forward. We also see possibilities of growing Curato into related services as well as beyond Norway over the next years,” he added. 

CapMan invested in Curato in 2007 from its €440 million CapMan Buyout VIII fund. The divestment comes as CapMan is currently raising its latest buyout fund, CapMan X, which has a €400 million target. The firm held a €206 million second close in August and aims to hold a final close next year. 

Altor made the investment from its €2 billion third fund raised in 2008.