KKR, Ardian buy Elsan stake from CVC

Alessia Argentieri
31 July 2020

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KKR and Ardian have invested in Elsan, a French operator of private hospitals and clinics owned by CVC Capital Partners.

The deal gives the company an enterprise value of around €3.3-3.5bn, equal to almost 12x EBITDA, according to press reports. This would be one of the largest SBOs recorded by the French market to date.

KKR is expected to acquire around 45% in the company, while Ardian will buy a stake of approximately 10-15%. CVC will reinvest in the business, but instead of deploying capital from its Fund V will use another one of its vehicles.

With the support of its new investors, the company plans to deploy around €150m per year to fuel projects aimed at increasing employment and boosting innovation in the healthcare industry.

Previous funding
Apax France and its listed vehicle, Altamir Amboise, bought a 40% stake in private healthcare company Vedici in 2006. 3i and Nixen purchased a combined 65% stake in Vedici in 2010, in a deal which gave the firm an enterprise value of €200m.

CVC acquired Vedici from 3i and Nixen in June 2014 via its Fund V. Subsequently, the GP bought clinic group Vitalia from Blackstone in November 2015 and merged it with Vedici, rebranding the group as Elsan. The company acquired MédiPôle Partenaires in 2017, substantially increasing the size of its turnover.

Company
Paris-headquartered Elsan manages a network of private hospitals and clinics across France. The company employs 25,000 staff and 6,500 doctors in its 120 clinics, treating more than two million patients every year.

People
Elsan - Thierry Chiche (chair).