Intermediate Capital Group set to acquire Cura Day Hospitals
Cura Day Hospitals is headed back to familiar hands. Street Talk understands the doctor-owned day surgery network is finalising a deal with London-listed buyout giant Intermediate Capital Group (ICG) following a hotly contested $500 million-plus auction.
Cura runs a string of day surgeries around the country.
ICG knows Cura well, having funded a management buyout from Archer Capital in 2014. The Rothschild/Miles Advisory-advised group fought off Switzerland’s Partners Group and a Medibank/Macquarie consortium for the doctor-owned day surgery network.
Cura makes $40 million a year at the earnings line and is slated to fetch $500 million-plus for its owner, Frankfurt-listed healthcare giant Fresenius Medical Care. Binding bids were originally due in early December but were dogged by delays.
Queensland-based Cura was founded in 2008 by doctors and management. The company owns day surgeries, eye surgeries and endoscopy units on the east coast and in Perth, Tasmania and Adelaide. Management and doctors still account for about 30 per cent of the register.
At least 20 parties took sale documents in the early stages of the process, attracted by its sizeable foothold in a fragmented industry and the lower operational costs incurred at day surgery businesses compared with hospital owners.
ICG has been getting busy in Australian healthcare, investing alongside a consortium of PresMed management and its doctor-shareholders to acquire PresMed Australia from Advanced Health in December last year. PresMed is a private day hospital provider. The asset manager has also made investments in Canopy Healthcare and Everlight Radiology.
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