Nordic inks Prospitalia deal with Five Arrows

Nicole Tovstiga
04 July 2018

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Nordic Capital has completed the acquisition of German healthcare services provider Prospitalia from Five Arrows Principal Investments.

Nordic Capital intends to support Prospitalia's management in its plan to strengthen the company's market position and to further develop supporting technology-enabled healthcare procurement services.

Prospitalia generates north of €30m in EBITDA, as previously reported by Unquote sister publication Mergermarket. It reported a €25.2m adjusted EBITDA on €62.4m in revenues in 2016, according to public filings.

Nordic Capital was competing with private equity firms Ardian, Cinven, Goldman Sachs Private Equity, Hg and TA Associates earlier in the sale.

The deal marks the third healthcare investment by Nordic Capital's ninth flagship buyout vehicle, Nordic Capital Fund IX, which held a final close on €4.3bn in May earlier this year.

Previous funding
Palamon Capital Partners acquired a majority stake in Prospitalia in a buyout deal worth approximately €75m in February 2007. The acquisition of the business from its founder, Hans Gassner, was funded by capital from the Palamon European Equity II fund.

Palamon generated a 3x return on the sale of its majority stake in PS TopCo, the parent company of Prospitalia, to the NM Rothschild's Five Arrows fund in July 2014.

Company
Founded in 1993 and headquartered in Ulm, Prospitalia is a procurement management and clinical solutions platform for acute, post-acute and other service providers and vendors in the healthcare sector. It works with hospitals and healthcare facilities to lower the cost of goods purchased.

The group has two main subsidiaries, Pro Care Management and Comparatio, and employs a staff of 200. It serves around 3,000 customers in Germany, the UK, the Netherlands and Australia, with an aggregated managed spend of €2.4bn.

People
Prospitalia – Markus Wild (CEO).

Advisers
Vendor – Baird (corporate finance); Rothschild (corporate finance).