LGV completes hat trick of healthcare exits

LGV has sold three healthcare businesses in a matter of weeks. Cinven-owned Spire Healthcare has snapped up 10-hospitals strong Classic Hospitals for £145m generating a return of approximately 3x LGV's investment in a two-and-a-half-year period.

Merrill Lynch Global Private Equity (MLGPE) bought Integrated Dental Holdings (IDH), the UK's largest dental care provider, enabling LGV to walk away with 4x its money in less than two years of ownership. MLGPE is thought to have paid £300m for the dental business and used a syndicate of four banks including Merrill Lynch to secure the debt for the deal.

LGV's third realisation came from exiting infection control products business Verna Group, which was acquired by Bank of Scotland Integrated Finance for an undisclosed sum.

LGV's exit from three of its healthcare-related businesses leaves it with one remaining healthcare portfolio company - Craegmoor, a specialist provider of care for people with physical and mental disabilities. Craegmoor underwent a £255m refinancing arranged by Bank of Scotland in the second half of 2007.

Under LGV's ownership, IDH's network has expanded from 127 practices to more than 200 through a combination of new openings and acquisitions, including that of Orthoworld in July 2007. (Page 28).

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• Topics
• Exits
• UK / Ireland
• Healthcare