Montagu sells Euromedic stake to Waypoint

The sale will net UK-based Montagu a return of 2x

UK-based Montagu Private Equity has offloaded its stake in Euromedic International, a pan-European healthcare services provider, in a deal valuing the business at €1 billion.

Montagu has sold its stake of around 30 percent to Waypoint Capital, a European investment vehicle backed by Swiss billionaire Ernesto Bertarelli, netting a return of 2x, a source with knowledge of the deal told Private Equity International.

Further financial details of the transaction were not disclosed. Montagu declined to comment on the exit.

Waypoint already owns a stake of around 60 percent in Euromedic through its investment partnership Arès Life Sciences, which was established in 2008 with the backing of the Bertarelli family and focuses on investments in the pharmaceuticals, biotech, medical technologies and healthcare services sectors.

Headquartered in Budapest, Euromedic offers diagnostic imaging, cancer detection and cancer treatment services. It operates 144 diagnostic and cancer treatment centres in 14 countries across Europe, and employs more than 3,000 professionals, more than 750 of whom are medical doctors.

Montagu and Arès invested in Euromedic alongside Merrill Lynch Global Private Equity and the company’s management in 2008 for around €800 million. In July 2012, Montagu and Arès bought out Merrill Lynch’s stake and took full control of the company, according to Montagu’s website.

Montagu says Euromedic’s total centre base has increased by 80 percent since its 2008 investment in the company. In 2011 Euromedic sold off its dialysis service business to Fresenius Medical Care, the world’s largest provider of dialysis products and services, in a deal valued at €485 million.

Montagu made its original investment in Euromedic from Montagu Private Equity III, a 2006-vintage vehicle which closed above its €2 billion target on €2.26 billion, according to Private Equity Internaional’s Research and Analytics division.

Montagu has made three investments in the healthcare sector this year, acquiring DORC Holding, a provider of instruments and equipment for ophthalmic surgery, the healthcare devices and prescription retail divisions of London-listed packaging group Rexam in February, and France-based pharmaceutical company Arkopharma in March.