Private Equity News & Analysis

CVC sells healthcare business to BUPA(4)

BUPA, a UK healthcare group, has made a A$1.225bn acqusition of CVC's DCA Agedcare Group, just months after selling its portfolio of hospitals to Cinven, a UK buyout group.

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CVC Asia Pacific and CVC Capital Partners have sold their controlling interest in DCA Agedcare Group, an Australian and New Zealand healthcare business, to UK rival BUPA, in a deal worth A$1.225 billion ($1.1 billion).

CVC acquired DCA Agedcare Group, which owns the Amity Group in Australia and Guardian Health Care in New Zealand, as part of its purchase of DCA Group in December 2006.

Together Amity and Guardian have 96 care homes and 7,000 beds with a combined turnover of A$344 million for the year ended 30 June 2007.

European buyout firm Cinven paid £1.44 billion (€2.13 billion, $2.85 billion) for BUPA’s hospital portfolio in July this year.

BUPA, one of the largest providers of care to the elderly in the UK, already owns BUPA Australia, the third largest health insurer in the country.

Following completion CVC will focus on DCA Group’s diagnostic imaging business: the I-MED Network in Australia and the Lodestone practices in the United Kingdom.

Adrian MacKenzie, partner at CVC, said: “We have achieved a good price for a quality business. The price represents a significant increase to the value attributed to the Agedcare business by the independent expert at the time of the DCA acquisition.”

Goldman Sachs JBWere acted as exclusive financial adviser to CVC. Freehills acted as legal adviser to CVC.