Innova Capital, a leading private equity fund in CEE, together with the Founders sold to Medicover their stake in Neomedic, a leading neonatology and obstetrics hospital group in southern Poland, in a EUR 70.5m deal.
Neomedic operates three hospitals with surrounding outpatient and primary care clinics. In addition, Neomedic operates ambulatory centres focused on obstetrics. The first hospital of Neomedic was established in 2001 in Kraków and it has since then shown strong organic growth.
In 2018, Neomedic reported revenue of ca. PLN 120m (ca. EUR 28m).Neomedic operates an integrated service for the population of its catchment areas which account for approximately 10% of the population of Poland as well as has high service levels and satisfaction levels, which resulted in long term budget allocations in recent funding rounds.
Innova Capital invested in Neomedic in 2012 by taking over nearly 70% of its shares. This was another founder succession transaction executed by the fund in recent years. In line with its investment policy, Innova continued to collaborate with Neomedic founders to build the company’s value.
Tomasz Wiśniewski, CEO of Neomedic, said:
“The management of Neomedic is delighted that the Medicover Group will become the new owner of the Company. Medicover is present in Poland for many years and we value highly its experience in the healthcare sector, especially as the operator of the largest private hospital in Poland – the Medicover Hospital in Wilanów. We see a lot of benefits in exchanging know-how and working together to further expand the gynecology and obstetrics practices. We are looking forward to continuing our mission of growing the Company with their support. Our plans focus on strengthening of our offer in Kraków and the Małopolska region and we will also be looking for opportunities in other locations.”
Leszek Muzyczyszyn, Senior Partner at Innova, commented:
“We are very happy that after six years of intensive development of the company and diversifying its business, Neomedic will become part of a much larger structure of Medicover Group. This will allow for continued growth and development of the hospitals. The management of Neomedic and all employees have done an amazing job in the last few years, establishing leadership in both the range and the quality of specialist services offered. We believe that this will benefit the patients in the region and the new owner of Neomedic for years to come. ”.
Following entities advised the sellers in the process: VCP Polska (exclusive transactional advisor), Krassowski (legal counsel).
Source: Innova Capital