Carlyle closes in on Turkish exit

UK-based Pamplona Capital Management is nearing a deal to acquire Medical Park Group, a hospital chain headquartered in Istanbul. 

The firm has entered exclusive negotiations to buy a majority stake in the group, a source close to the matters told Private Equity International. 

The Carlyle Group acquired a 40 percent stake in Medical Park in 2009 for €150 million. The remainder belongs to Turkish businessmen Muharrem Usta and Haydar Sancak, who each own 30 percent holdings in the business. At press time, it was unclear whether the current shareholders would retain a stake in the business upon completion of the transaction. Carlyle declined to comment. 

Medical Park  operates 19 hospitals  across Turkey

The deal, expected to complete by the end of June 2013, was reportedly the result of an auction that included CVC Capital Partners and TPG as potential bidders. 

Medical Park was established in 2005 in Istanbul, by combining two existing hospitals dating back from the mid-90s. It now operates 19 hospitals and medical centres in various cities across Turkey, and counts more than 9,000 staff. 

Carlyle, who initially invested in the group to support its expansion and reduce debt, hired Credit Suisse and Goldman Sachs to advise on selling a stake of the business in September 2012. Trade sale, secondary sale and initial public offering were all considered possible options at the time, Medical Park said then in a statement. 

Carlyle has other significant interests in Turkey, having bought a 30 percent stake in hosiery company Penti last September, as well as 48 percent of Bahcesehir Koleji, a Turkish private education provider, in January 2012. 

The firm’s investments in the region are made through its dedicated MENA fund, which reached a final close in March 2009 on $500 million.