Trilantic Capital Partners Europe has entered into an agreement with Fondazione Salvatore Maugeri (FSM) to make an initial investment of EUR66 million in the company to finance both organic and inorganic growth projects.
As part of the transaction, FSM, a leading Italian operator of private hospitals, will transfer all its operations to a new company. Trilantic Europe will invest in Maugeri through a EUR66 million capital investment and initially will own c. 34% of Maugeri, and FSM will own the remaining circa 66 per cent. Trilantic Europe also has an option to increase its investment to a total of circa EUR100 million, with a subsequent increase of its participation in Maugeri to circa 43 per cent.
The transaction allows Trilantic Europe to invest in a company with predictable cash flow generation, which has an excellent reputation, and which operates in a regulated industry with stable volumes and revenues. The Italian healthcare sector is highly fragmented, with high barriers to entry and high demand, driven by the country’s ageing population and the increasing market share of non-acute hospitals.
The transaction represents Trilantic Europe’s third investment in the healthcare sector.
Vittorio Pignatti Morano, Chairman of Trilantic Europe, says: “Maugeri is one of the leaders in Italy in non-acute private hospital services and exemplifies the excellence of the Italian healthcare system. Trilantic Europe has invested in the company with the aim of benefitting from growth opportunities in a highly fragmented sector. This investment consolidates our strong focus in the healthcare industry, following the investments in Mediclinic, a hospital operator, and, more recently, in Doppel Farmaceutici, a pharmaceuticals producer.”
Professor Gualtiero Brugger, Chairman of FSM, says: “The agreement with Trilantic Europe is especially important because it will boost the expansion of Maugeri, including through potential acquisitions. Indeed, the Italian private healthcare sector is affected by difficulties that can only be overcome by seizing the opportunities created by economies of scale and scope, increasing the ability to renew and strengthen capital structures and making investments.”
The proposed transaction is subject to certain condition precedents, including the authorisation from certain Italian regional authorities of the transfer of all the operations from FSM to Maugeri.
