Mid Europa consolidates Polish health market

The Central and Eastern Europe-focused private equity fund has agreed to purchase Promedis for €15m, its fourth Polish healthcare provider in a year. The private equity deal is the third agreed in Poland this week.

LUX MED, the Polish healthcare chain owned by Mid Europa partners, has agreed for the bolt-on acquisition of Promedis, another Polish health clinic chain, for around €15 million ($22 million).

The deal follows the completion of Mid Europa’s acquisition of Centrum Medyczne, the third largest private Polish healthcare provider in terms of revenue, for an undisclosed amount, a deal which was agreed in April.

LUX MED:
growing at a
healthy pace

Mid Europa started consolidating the Polish healthcare market with the acquisition of LUX MED, the second-largest private healthcare provider in Poland, in July 2007. 

Subsequently, Mid Europa acquired Medycyna Rodzinna, a smaller Polish operator, in November and merged the two entities.

“On a pro-forma basis, the platform will operate 57 own-branded clinics, 23 captive clinics and provide approximately 930,000 subscribers access to a network of approximately 900 affiliated private providers,” Matthew Strassberg, who leads Mid Europa’s Polish healthcare investments, said in a statement.

Mid Europa is currently investing its €1.5 billion third fund, Mid Europa Fund III, which it closed in October last year.

Data from the Emerging Markets Private Equity Association suggest that fundraising for Central and Eastern Europe-focused private equity in the first half of 2008 had dropped 30 percent compared to the same period in 2007.

In the last week both IK and Enterprise Investors have agreed significant Polish deals.