QIC, Goldman consortium buys cancer care provider

Queensland Investment Corporation, Goldman Sachs and Pagoda Investment will invest over $750m in the Australian cancer care provider as it pursues its Asia expansion plans.

A consortium led by the Queensland Investment Corporation and which includes Goldman Sachs Principal Investment Area and Chinese private equity firm Pagoda Investment have acquired a majority stake in Melbourne-based cancer care provider Icon Group, according to a statement.

The consortium will acquire Quadrant Private Equity’s majority stake in the company for over A$1 billion ($750 million; €670 million).

Quadrant invested A$40 million in Icon in May 2014 through its Quadrant Private Equity No.4 buyout fund, which closed on A$850 million in 2014. Under the firm’s three-year ownership, Icon’s EBITDA increased multiple times, it expanded operations into Asia and grew operations through acquisitions and organically, Quadrant said on its website.

Brisbane-headquartered Icon provides oncology services in Australia, New Zealand, Singapore and China. The company delivers over 1 million patient interactions annually and offers medical oncology and radiation oncology and also manufactures oncology drugs.

The investment will be used to extend Icon’s delivery of cancer care – both domestically and internationally – using technology and telehealth.

Icon’s management and organisational founders will continue to lead the business.

QIC’s head of global private capital Marcus Simpson said the acquisition aligns with QIC’s regional strategy of investing in operating businesses in sectors such as healthcare where Australia has a competitive advantage.

“We are again bringing together local and global capital, and committing our expertise as investors and owners, to assist an Australian business grow in the region, and link to Asia,” Simpson said in statement.

On the consortium, Simpson told Private Equity International that QIC had an existing strategic relationship with Pagoda and the pair had previously looked at deals together. QIC chose to partner with Goldman because of its large healthcare services portfolio and its extensive relationships in Asia.

QIC has A$81.1 billion in funds under management and invests in private equity, real estate, infrastructure and multi-asset investments globally. Its private capital unit manages A$4.2 billion of assets and targets sectors where Australia has a natural competitive advantage such as food and agriculture, healthcare services, education and leisure.

The deal is subject to shareholder and regulatory approval.

The acquiring consortium was advised by Goldman Sachs, Corrs Chambers Westgarth and Deloitte; Icon was advised by Credit Suisse, EY & King & Wood Mallesons.