IK Investment Partners, a pan-European buyout firm, has agreed to sell GHD GesundHeits GmbH Deutschland, a German home care provider, to fellow private equity firm Nordic Capital.
Financial details of the transaction were not disclosed, but a source close to the matter said the enterprise value was about €500 million.
IK declined to comment, and Nordic did not immediately respond to a request for comment at press time.
It is understood that the sale has yielded IK a 2x return in three years, and is still pending regulatory approval.
GHD, which was founded in 1992, provides medical products and services to more than 140,000 patients in Germany. Its homecare business, which represents 75 percent of sales, has a network of 1,100 nurses and trained medical staff working in eight branches across Germany.
IK bought a majority stake in the company in 2010. Under IK’s ownership, the business has almost doubled its sales from €284 million in 2010 to €485 million in 2013. Since IK’s investment, GHD has also become a distributor of nutrition products from well-known suppliers, such as Nestlé and Abbott, the firm said.
In the last three years, the GHD’s oncology business has been developed through a number of strategic acquisitions. The German oncology market is characterised by organic growth fuelled by ongoing healthcare trends as well as regulatory changes enabling GHD to develop a first mover positioning in its markets, according to IK.
This marks the fourth exit from IK Fund 2007, a €1.68 billion vintage, following earlier exits from Hansa Group, Snacks International, Flabeg and Etanco. The fund has eleven companies left in the portfolio.
For Nordic Capital, this is the second investment it has announced this week. On Wednesday, the firm said it had agreed to buy AniCura, a Nordic operator of pet hospitals and veterinary clinics. Nordic is currently investing its Fund VIII, a €3.5 billion vehicle which closed last year.