Advent sells Centrul Medical Unirea to Mid Europa

The deal saw Advent fully exit alongside the founding Enayati family, six years after the GP acquired a majority stake in the business, which is also known as Regina Maria.

Erste Group provided debt for the buyout, and was the sole underwriter.

Mid Europa's acquisition was made through its Mid Europa IV vehicle, which held a final close on €800m in August last year. The GP will become the third private-equity backer of CMU after Advent and 3i, the latter of which acquired a 48.7% stake in the business in 2007.

During Advent's ownership, the firm claims CMU's revenue quadrupled and EBITDA tripled, which was achieved through organic growth as well as the bolt-on of Euroclinic.

Though the deal value was not disclosed, Mid Europa said it will have committed equity of around €500m to the CEE healthcare sector once the deal closes, with CMU being the second such investment by the GP after an investment in Polish medical service Lux Med. The GP's investments in Lux Med are estimated to amount to less than €50m, and it exited in a €400m trade sale to Bupa in 2012.

The transaction is just the second buyout to happen in Romania in 2015, the other being Abris Capital Partners' acquisition of tissue producer Pehart from the European Bank for Reconstruction and Development.

Previous funding
CMU first received private equity funding in 2007, when British GP 3i acquired a 48.7% stake in the company.

Three years later, 3i was bought out by Advent in an SBO that saw the GP take a majority stake in the company.

Company
Founded in 1999, CMU is a Romanian private healthcare network trading under the Regina Maria name.

The company has 300,000 corporate subscriptions and represents 22 company-owned locations, four hospitals, two maternity clinics, five medical campuses, five imaging centers, 11 accredited medical laboratories, a stem-cell bank and more than 180 partner clinics across Romania.

The company employs a workforce of around 3,000.

People
Matthew Strassberg is a senior partner at Mid Europa and led the deal alongside Csanad Daniel, Tas Tobias, Albert Jelinek and Bartosz Malecki. Advent managing director Emanuela Popa-Radu worked on the exit. Fady Chreih is the CEO of Regina Maria.

Advisors
Equity – White & Case (Legal); Bondoc & Asociatii (Legal); EY (Financial due diligence); Banca Comerciala Romana (M&A).
Vendor – RTPR Allen & Overy (Legal); PwC (Financial due diligence); LEK (Commercial due diligence); Rothschild (M&A); NNDKP (Legal).

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• Topics
• CEE
• Buyouts
• Healthcare
• Exits
• Romania
• Advent International
• Mid Europa Partners
• Secondary buyout
• unq2015sep