Hirslanden Group (Switzerland) - Oct 2007

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01 October 2007

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BC Partners have exited their stake in Switzerland’s largest private hospital group, Hirslanden Finanz to South African hospital group Medi-Clinic for CHF 2.622bn, equating to an enterprise value of CHF 3.430bn. Rothschild and UBS were mandated to run the sales process. Medi Clinic is said to be looking for investment opportunities worldwide following its strategic decision to diversify geographically within its core business of acute, specialist orientated hospital care.

The Hirslanden private hospital group was founded at the beginning of July 1990 when the Hirslanden Clinic and four other clinics, Im Schachen (Aarau), Beau-Site (Berne), Cecil (Lausanne) and Im Park (Zurich), which then belonged to the AMI-group (American Medical International) were brought under one management. The group dates back to 1931, when the Cecil clinic in Lausanne first opened. Today the Hirslanden portfolio comprises 13 private acute-care facilities with 1,275 beds. For the year to end-December 2006, the group reported revenues of approximately CHF 900m, and EBITDA of approximately CHF 205m.

Previous funding

In 2002, BC Partners acquired a 91.15% stake in Hislanden Group for CHF 930m from Swiss banking group UBS AG. JP Morgan provided undisclosed debt and mezzanine facilities. During its ownership BC Partners invested more then CHF 400m in the growth and development of the group, including the acquisition of the St Anna Klinik in Lucerne. This resulted in an increase in revenues by more than 30% to approximately CHF 900m in 2006.

Advisers

Equity - Baker & McKenzie, (Legal)Equity - Citigroup, (Corporate Finance)Equity - Dresdner Kleinwort, (Corporate Finance)Equity - Hofmeyr Herbstein & Gihwala Inc, (Legal)Equity - Lenz & Staehelin, (Legal)Equity - PricewaterhouseCoopers, (Financial Due Diligence)Equity - Standard Bank of South Africa, (Corporate Finance)Vendor - Dickson Minto WS, (Legal)Vendor - Ernst & Young - Transaction Advisory Services , (Financial Due Diligence)Vendor - Homburger Partners, (Legal)Vendor - Rothschild , Dominic Hollamby (Corporate Finance)Vendor - UBS AG, (Corporate Finance)