Mid Europa Partners (Mid Europa), the largest private equity firm focused on Central and Eastern Europe, has agreed to acquire a 65% stake in Kent Hospital Group (Kent), a private hospital operator based in Izmir, Turkey. In addition, Mid Europa has entered into an agreement to increase its stake to up to 90% over time. The transaction is subject to customary closing conditions.
Established in 2004, Kent Hospital is one of the leading and most modern hospitals in southeastern Europe. Kent Hospital is a full service, 22,000 square-meter, 162 bed capacity medical complex, offering state-of-the-art diagnostic and treatment services. The team of medical experts, many of whom have international experience, perform over 126,000 medical procedures annually, providing high quality medical care to approximately 83,000 patients. Kent Hospital is accredited by Joint Commission International and has particular strengths in high acuity treatments, including organ transplants, cardio-vascular surgery and cardiology.
The transaction represents Mid Europa’s first investment in Turkey, and fourth in healthcare services.
Matthew Strassberg, Partner of Mid Europa responsible for healthcare investments, says: “We have identified private healthcare services in Turkey as a strong and sustainable growth opportunity and believe that Kent, with its track-record of medical excellence, represents an attractive consolidation platform in this market.”
Kerim Türkmen, Director of Mid Europa responsible for Turkish coverage, who led the investment, says: “We are pleased with Kent as our first Turkish investment, and with the opportunity to partner with Kent’s founding shareholder Mr. Cem Bakioğlu. By backing a first class management team, we anticipate supporting Kent’s next phase of growth, both organically, and by making acquisitions in the fragmented market.”
Cem Bakioğlu, Chairman of the Board of Directors of Kent and the leading founding shareholder who will remain a co-investor in Kent alongside Mid Europa, says: “Having been instrumental in the establishment and development of Kent to date, I look forward to supporting its future expansion.”
Ruşen Yıldırım, CEO of Kent, says: “We welcome the investment by Mid Europa, who bring relevant sector expertise, as well as track record of consolidating healthcare service provider. Their entry into the shareholder base validates our strategy to date and provides a strong foundation for the Group’s next phase of growth.”
The transaction was executed by Kerim Turkmen, Robert Chmelar and Viktoria Habanova from Mid Europa.
