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CVC sells AUD1.2bn Australasian healthcare group to Bupa

CVC Asia Pacific and CVC Capital Partners have agreed the sale of a controlling interest in DCA Agedcare, an Australian and New Zealand healthcare business, to UK-based private healthcare

CVC Asia Pacific and CVC Capital Partners have agreed the sale of a controlling interest in DCA Agedcare, an Australian and New Zealand healthcare business, to UK-based private healthcare group Bupa for AUD1.225bn.

Completion of the sale is expected before the end of the year, subject to regulatory approval. CVC acquired DCA Agedcare, which comprises Amity in Australia and Guardian Health Care in New Zealand, through its acquisition of the DCA group last December. Together Amity and Guardian have 96 care homes and 7,000 beds and reported combined turnover of AUD344m for the year to the end of June.

Following the sale of DCA Agedcare, CVC will focus on the DCA Group’s diagnostic imaging business, which comprises the I-MED Network in Australia, and the Lodestone practices in the UK.

‘We have been looking at opportunities in aged care in various markets for some time,’ says Bupa chief executive Val Gooding. ‘Following the recent expansion of our care home business in Spain, we are delighted with this entry into Australia and New Zealand.’

CVC partner Adrian MacKenzie says: ‘We have achieved a good price for a quality business. The price represents a significant increase from the value attributed to the Agedcare business by the independent expert at the time of the DCA acquisition.’

CVC Capital Partners is a global private equity and investment advisory firm founded in 1981, with a network of 18 offices and 160 employees throughout Europe, Asia and the US. Its CVC Fund IV, CVC Asia II and CVC Tandem Fund represent total capital of more than USD15bn.

CVC’s current European portfolio totals 36 investments and includes the business that owns the commercial rights to the Formula One motor racing series, UK affinity brand business AA/Saga, Spanish clothing retailer Cortefiel, UK department store group Debenhams and Italian directories business Seat Pagine Gialle. The Asian portfolio comprises 10 investments and includes Australian media group PBL Media.

Bupa, a co-operative UK health insurer, was established in 1947 and now has more than 8 million customers in 190 countries and more than 40,000 employees. Its main business areas are insurance, care homes for older people and young people with disabilities, health assessments, workplace health and childcare services.

Bupa Care Services operates 300 nursing and residential homes in the UK with 20,000 registered beds, 25 per cent of which are registered for specialist dementia care. Bupa already owns Bupa Australia, the country’s third largest health insurer.

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