French company to buy Mater Private in Ireland
Paris-based infrastructure fund Infravia is buying Irish hospital group Mater Private from US fund HarbourVest. Healthcare Europa speaks to an Irish source familiar with the deal.
Mater Private owns hospitals in Cork and Dublin, cancer treatment centres in Limerick and Liverpool, and a number of outpatient clinics, while Infravia manages €3bn worth of assets around the world.
The Irish Times reports the deal values the group at around €500m – but our well-placed source thinks it was higher: “I hear it didn’t go for a silly price but the figure I’ve seem reported in the Irish Times of €500m seems is on the low side – that’s the figure Fresenius were reported to be in for two years ago and with an improving economy and an uptake in PMI it would have been very surprising if it didn’t sell for more. I’d imagine the multiple would have been around 12x which is usual for this kind of asset.
“Mater Private’s history is interesting. Netcare went in with a €400m bid a few years ago which was turned down, I believe. Then in 2016, Fresenius MC was reported to be interested but walked away from the deal (with previous owner Capvest). I did wonder what they were doing looking at Ireland at the time, their interest felt a bit strange.
“But that’s not to say Mater Private isn’t an interesting business. It’s an attractive asset in a country where over half the population has PMI. Its main hospital is in the city centre which means it’s congested but it’s well-regarded and high-tech.
“It’s also attracted more recent interest overseas – I know of at least two Asian buyers who were taking a look at it last year.
Our Analysis: Infravia is an infrastructure fund – unlike private equity it may not be looking to double its investment in a five-year window.
It’s worth noting this isn’t its first step into the Irish market, it paid around €100m for Irish nursing home group Carechoice last year. Ireland is clearly of interest and it may be looking at steps to join up its businesses – it wouldn’t be a surprise to see it looking at rehab, for example, in the coming months.
It’s also worth noting that Ireland is a good place to do business at the moment. The economy is growing by 5% – and PMI is up by over 5% year-on-year.
We would welcome your thoughts on this story. Email your views to David Farbrother or call 0207 183 3779.