CVC Capital Partners has agreed to acquire a 62 percent stake in Quirón, a Spanish hospital group, from Doughty Hanson, according to a statement.
Financial details were not disclosed, but a source close to the matter told PEI the deal value was €1.6 billion. The sale will net Doughty a 2x return and a 40 percent internal rate of return, the source added.
Doughty declined to comment, while CVC did not immediately respond to a request for comment at press time.
Doughty invested in the business in April 2012, when it acquired USP Hospitales. In July 2012, it merged the business with Grupo Hospitalario Quirón before expanding the combined group further with the acquisition of Teknon, the single largest private hospital in Barcelona, in November 2013.
Quirón now operates 21 hospitals with a total of over 2,800 beds across Spain, as well as four fertility treatment centres and a number of consultation centres and day hospitals. The group currently has over 8,200 employees and is one of the most successful hospital networks in the country.
Doughty made the investment using its Doughty Hanson & Co V, a €3 billion 2007 vintage. This the fourth successful exit from the fund. Nearly all capital commitments have been returned to investors, with four further assets remaining before the portfolio is fully realised, Doughty said.
The firm is currently in market with its sixth buyout fund, which has a €2 billion, PEI revealed last August.
CVC is currently investing CVC European Equity Partners VI, which reached its €10.5 billion hard-cap last June. Last month it used this vehicle to acquire Advantage Sales & Marketing (ASM), a North American provider of outsourced sales and marketing services, together with Leonard Green & Partners from Apax Partners.