Bridgepoint acquires LBO France’s Médi-Partenaires

The deal will see Bridgepoint, Médipôle CEO Marcel Hermann and the company's management acquire Médi-Partenaires from LBO France and Equistone to then merge the business with Bridgepoint portfolio company Médipôle.

The newly combined group had revenues reaching €830m for 2013 and will employ 8,500 staff across 60 healthcare facilities in France. The merger of the two businesses will form the second-largest private hospital group in France, according to the parties involved.

On its own, Médipôle generated revenues of €276m in 2013 and employed 3,400 staff.

Previous funding
Bridgepoint acquired Médipôle in March 2011 via its €4.8bn Bridgepoint Europe IV fund, taking a majority stake in the owner buyout of the business. According to unquote" data, the deal was confirmed to be worth in excess of €200m. Médipôle CEO Marcel Hermann took part in the transaction alongside Bridgepoint.

The GP and Hermann acquired the business from Azulis Capital (formerly Banexi Capital Partenaires), which had provided growth funding to Médipôle in June 2007. The firm had invested via its €265m Middle Market Fund III vehicle.

LBO France acquired Médi-Partenaires in March 2007, acting as lead investor alongside mezzanine provider Intermediate Capital Group and existing equity investor Equistone Partners Europe.

The deal valued Médi-Partenaires at €600m, according to unquote" data. LBO France acquired a 38% stake in the business with Equistone retaining a 12% shareholding, while management upped its stake to 50% of the business. Credit Agricole CIB underwrote the debt package for the deal.

LBO France acquired the business from investors that had bought Médi-Partenaires in May 2005 for an enterprise value of €320m. Equistone (then Barclays Private Equity) and Cobalt Capital provided €110m in equity alongside €57m in mezzanine financing from ICG and Euromezzanine Conseil. The balance of €153m was provided as a senior debt package underwritten by Natixis Private Equity.

Médi-Partenaires' management upped its stake in the company to 28% as part of the transaction, while the two equity providers took equal shareholdings in the business.

Debt
A debt package has been provided for the deal by Crédit Suisse, Goldman Sachs's Broad Street Credit Holdings and Crédit Agricole CIB.

Company
Médi-Partenaires was founded in 1990 and is headquartered in Paris. The group owns and operates 35 establishments comprising 24 private medical clinics, four imaging centres, four centres for the treatment of kidney failure, two homecare centres and one rehabilitation centre.

The company employs 5,100 full-time staff and its revenues for 2013 reached €552m. At the time of Equistone's investment in 2005, Médi-Partenaires was set to generate €309m in turnover.

Revenues have increased by 77% since LBO France's investment, according to the firm.

People
Marcel Hermann is the CEO of Médipôle and has become president of the new group. Guy Latourrette is the president of Médi-Partenaires. Bridgepoint director Vincent-Gaël Baudet worked on the deal. Jérôme Guez is a partner at LBO France.

Advisers
Equity – Rothschild & Cie Gestion (M&A); Crédit Suisse (M&A); Latham & Watkins (Legal); Eight Advisory (Financial due diligence); Landwell (Social due diligence, legal, tax); Roland Berger (Commercial due diligence, strategic due diligence); ERM (Environmental due diligence); SIACI (Insurance due diligence).
Vendor (LBO France) – Mayer Brown (Legal, tax, corporate due diligence); PwC (Financial due diligence); Gide (Legal).

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• Topics
• Healthcare
• France
• Exits
• Portfolio management
• Bridgepoint
• LBO France
• Equistone Partners Europe
• France
• Acquisition finance