Business & Finance
Medicover signs agreement to acquire Neomedic in Poland for EUR70.5m
18 February 2019 -

Medicover AB (STO:MCOVB), a leading international healthcare and diagnostic services company, announced on Friday the signing of an agreement to acquire Neomedic, a leading neonatology and obstetrics hospital group in southern Poland, for EUR70.5m.

This transaction, which is subject to customary merger control approvals, is expected to be consolidated during the second quarter 2019.

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 is expected to report revenues of approximately EUR28m. Its profitability is expected to contribute positively to Medicover and the transaction value implies a high single digit EBITDA multiple, including synergies, which are expected to be realised within 12 months.

According to Medicover, this acquisition will be funded with current committed debt facilities and is expected to be accretive in 2019.

Medicover operates a large number of ambulatory clinics, hospitals, specialty-care facilities and laboratories and the largest markets are Poland and Germany.