G Square transfers ISPS to new fund after sale talks with PAI collapse

Francesca Veronesi, Maryna Irkliyenko and Josh O'Neill
22 November 2021

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Private equity firm G Square has transferred Amphi Holdings – its France-based healthcare and paramedical training specialist portfolio company – to a new fund after the process to sell it came to a halt this summer, according to five sources familiar with the situation.

The GP transferred the asset, which operates under the brand of Institut Supérieur des Professions de Santé (ISPS), to its newest vehicle, G Square Capital IV, the first source said. The fund was registered with the UK Companies House Registry in June 2021, according to Unquote Data.

During the transfer, the sponsor refinanced the business with incumbent lender CVC and another direct lender coming on board, as reported by Debtwire.

During the summer sale process, PAI made an offer and was in late-stage talks with G Square, but failed to reach an agreement, the first two sources said. G Square was looking to keep a significant stake in the business and have PAI co-invest, which proved to be a stumbling block for the deal, the two sources noted. Charterhouse and IK were also vying for the asset in the auction's second round, according to a report by L'Agefi. At the time of the process, bidders valued the business at a 13-16x EBITDA multiple, according to the second source.

Amphi – like French peer Medisup, which was bought by Stirling Square earlier this year – benefited from growth in the healthcare and education sectors. But some sponsors and lenders circling the company in the early stages of the auction decided to pass, given that a substantial portion of the EBITDA had been generated by operations in Spain and Latin America, an additional sixth and seventh sources said. The fact that Amphi is a group of schools working independently, without a management team overlooking the whole business, was also a potential drawback, the third source added.

Lazard was advising G Square on the process, as reported.

Amphi was a family-owned business until 2011, when Montefiore invested. The sponsor diversified the company's offering into postgraduate-level qualifications for several medical and healthcare professions before selling to G Square in 2016.

ISPS trains healthcare and paramedical personnel in France, Spain, Italy and South America. It coordinates training for physiotherapists, opticians and hearing aid assistants, among others.

CVC, PAI and Lazard declined to comment, while G Square did not respond to a request for comment.