Cinven, EQT target new geographies

Greg Gille
25 February 2014

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European buyout houses Cinven and EQT have been looking further afield for healthcare investments, this week buying US-based CRO business Medpace and Australian radiology specialist I-Med, respectively.

Earlier this week, Cinven announced the acquisition of a majority stake in Medpace, a US-based contract research organisation (CRO) from CCMP for a total consideration of $915m.

The business provides management services to the R&D departments of clients in the life sciences sector to help plan and oversee clinical trials. Established in 1992, Medpace is headquartered in Cincinnati and operates in 45 countries. The company generated an adjusted EBITDA of $94m in 2013.

According to Cinven's own portfolio listing, this marked the GP's first investment in a US-based company.

Meanwhile, EQT has entered talks to acquire Australian radiology business I-Med from its hedge-fund owners, in what also marks the GP's first foray into the country. The deal is reportedly worth in the region of A$400m.

I-Med provides medical imaging services across 200 clinics in Australia. The company's EBITDA reportedly stands at around A$79m. I-Med is no stranger to private equity, having already been owned by CVC between 2006 and 2011 – the company came close to the brink at the time and was ultimately taken over by its lenders.

Both Cinven and EQT have raised substantial vehicles in recent months. The former closed its fifth buyout fund on €5.3bn in the first half of last year, while EQT held a final close for its latest mid-market vehicle on €1.1bn at the end of January.