EQT III has agreed to sell healthcare and care provider Aleris Holding AB (“Aleris”) to Investor AB for an enterprise value of approximately SEK 4.4 billion plus up to a maximum of SEK 100 million (net present value) in a deferred earn-out payment.
Aleris was sold through an auction process in which EQT III received strong interest from both trade and financial buyers.
Aleris was formed in 2005 through the merger of ISS Healthcare and Care Partner AB. During the five years of EQT III’s ownership, Aleris has grown sales by approximately 22% per year and the number of employees has increased to over 5,000. In 2009, Aleris sales amounted to SEK 3.9 billion.
“We are very happy with the way Aleris has developed and advanced its position in the market. We believe that after the transformation from two local companies into a true pan-Scandinavian healthcare service operator, it is a good time for a new owner to take over,” says Åsa Hallert, partner at EQT Partners, advisor to EQT III.
Aleris operates in both the healthcare and the care segments and has leading market positions in all three Scandinavian countries; Sweden, Denmark and Norway. Sales are divided approximately equally between the healthcare and care segments and Aleris focuses its presence on major urban areas that cover around 70% of the population in Scandinavia. In the healthcare segment, Aleris is active in the primary care, specialist care and diagnostics markets while the care segment focuses on care for youth, care for adults and senior care markets.
The total Scandinavian healthcare and care market amounted to approximately SEK 800 billion in 2009 and is expected to grow by between 5% and 7% per year according to market estimates. The underlying drivers are demographic trends including a rapidly ageing population, increasing demand for care and healthcare services and new medical innovations and treatment methods.
Advisors to EQT III were, in addition to EQT Partners, Morgan Stanley, KPMG and Vinge.
Closing of the transaction is subject to final approvals from competition authorities and is expected end of August 2010.
EQT Partners, Johan Hähnel, Communications & PR
+46 8 506 55 334
EQT is a leading private equity group with investments in Northern and Eastern Europe, Asia and the US. EQT has specialized funds active within buy-outs, growth financing and infrastructure. EQT deploys a unique industrial approach to investing, utilizing a vast network of industrialists to identify and develop companies. EQT’s model is based on clear corporate governance. The EQT funds mainly acquire or finance market leaders with considerable growth potential.
EQT serves as an active owner and works in close cooperation with the management of the companies it acquires, to develop and implement value-enhancing strategies. EQT acts as a catalyst for change in the companies that the funds invest in. The companies develop into market leading players through genuine and sustainable operational improvements.
EQT has raised approximately EUR 13 billion in 12 funds, which have invested approximately EUR 8.5 billion in more than 75 companies. EQT owned companies have more than 500,000 employees.
Since EQT’s first acquisition in 1995, the average annual growth in the Equity funds’ portfolio companies has been 12%, the number of employees has increased by 11% and earnings by 18% annually. More than 75% of the value creation is attributable to operational improvements and top-line growth.
EQT Partners, acting as investment advisor to all EQT funds, has more than 100 investment professionals with an extensive industrial and financial competence. EQT Partners has offices in Copenhagen, Frankfurt, Helsinki, Hong Kong, Oslo, London, Munich, New York, Shanghai, Singapore, Stockholm, Warsaw and Zurich.
More information can be found on www.eqt.se