EQT and ISS in joint venture in health care and care of the elderly
ISS and the EQT III Fund (”EQT”) have decided today to form a new joint venture company that will be jointly owned by ISS and EQT, and in which the new management team has been offered the opportunity to acquire shares. The new company consists of ISS Health Care AB and CarePartner AB, two companies operating in health care, rehabilitation and treatment of substance abuse, psychiatry and care of the elderly and disabled. The new company will have sales of about SEK 1.7 billion.
The market trend for health and elderly care is strong and at the same time the industry is undergoing restructuring and consolidation. Through its size and the strong market positions held by ISS Health Care and CarePartner the new company will be one of the largest care companies in the Nordic area. With the help of its strong ownership the company is expected to develop its services further, thereby also contributing to necessary development of health and elderly care. It is anticipated that the new company will grow both organically and through acquisitions.
”The formation of the new company is part of ISS’ continued focus on health care and care of the elderly. I am convinced that our partnership with EQT can develop both companies’ operations, while we continue to offer professional health care and care of the elderly in the same way as before. Together we will be a very strong player in the Nordic market”, says Hans John Øiestad, outgoing Managing Director of ISS Health Care AB and CarePartner AB, as well as Managing Director for ISS Facility Services AB.
Lena Andersson Hofsberger has been appointed as new Managing Director of the combined company. Lena Andersson Hofsberger will take up her post in March and will succeed Hans John Øiestad.
Lena Andersson Hofsberger is 50 years old and a Graduate Business Administrator, specialising in international marketing, from the University of Gothenburg. She has a long career in the service sector behind her, with various senior management positions in the Compass Group Plc (previously SAS Service Partner and Select Service Partner). Lena Andersson Hofsberger has been President of Compass Global Retail and Concession Catering and President of Select Service Partner Worldwide, as well as head of division at Eurest Skandinavien.
”EQT is looking forward to acting as a catalyst in the development of the newly formed company. EQT invests in companies with a strong market position and potential for growth – a description that matches both ISS Health Care and CarePartner. It is our ambition to assist the executive group management in every way in their work of further strengthening their market position”, says Ole Andersen, partner at EQT Partners.
The transaction is subject to approval by anti-trust authorities.
EQT is one of Europe’s most well-known private equity companies. EQT’s strategy is, as an active owner and in close co-operation with the management of the companies it acquires, to develop and implement value-enhancing growth strategies. At present EQT is the leading Northern European group of private equity funds, with equity commitments of almost EUR 6 billion. EQT Partners, acting as exclusive investment advisor to all EQT funds, has offices in Stockholm, Copenhagen, Munich Frankfurt and Helsinki. EQT’s funds have invested in over 30 companies, with combined sales in excess of EUR 7 billion.
ISS Health Care AB is part of ISS A/S, which is one of the world’s largest service companies with about 275,000 employees in 41 countries and sales of about DKK 36 billion. ISS A/S – listed on the Copenhagen stock exchange - is a facility service company supplying services in the form of cleaning, catering, office support and property services. In Sweden, ISS A/S also operates through its subsidiary ISS Facility Services AB, which with 10,400 employees and sales of about SEK 4.5 billion, is one of Sweden’s largest service companies.
The new joint company
ISS Health Care, with about 900 employees, offers specialist care, clinical physiology, treatment of sleep apnea/snoring, fitting hearing aids and rehabilitation and treatment in psychiatry and substance abuse. Through its subsidiary, M&M Medical, ISS Health Care runs the following local hospitals and clinics; Sabbatsberg Närsjukhus, Täby Närsjukhus, Rosenlunds Närsjukhus, Järva Närsjukhus, M&M Hörsel, Europakliniken and the X-Ray clinic at Sabbatsberg with branches at the local hospitals. The subsidiary ISS Rehab runs 7 treatment and rehabilitation centres spread across Sweden. ISS Rehab’s operations also include psycho-social treatment and psychiatric services in the form of heavily enhanced care in foster homes. Clinical physiology and treatment of sleep apnea are handled by the subsidiary FysiologLab in Stockholm. ISS Health Care has sales of about SEK 800 million.
CarePartner, with about 3,500 employees, offers services in the care of the elderly and disabled. The company runs homes designed for the elderly, service flats, sheltered housing for dementia patients and the disabled, home-help services and home nursing. Most of the operations are in Sweden, but the company is also established in Denmark and Norway. CarePartner operates at present in around 50 places in the Nordic countries, with sales of about SEK 900 million.
For more information please contact:
Hans John Øiestad, outgoing Managing Director of ISS Health Care AB and CarePartner AB, as well as Managing Director for ISS Facility Services AB.
+46 734 36 61 70
Christer Andersson, Director, ISS Health Care, +46 704 54 21 50
Anders Lindblad, Deputy Managing Director and acting Managing Director, CarePartner. +46 734 36 62 54
Ole Andersen, Partner EQT, +45 23 73 38 42
Johan Hähnel, Director Communications & PR EQT, +46 706 05 63 34