Narayana Health (NH) is acquiring 100% equity shares of Practice Plus Group Hospitals Limited(PP), a Company incorporated in the United Kingdom.
- Founded in 1997, PP is an operator of hospitals in the United Kingdom. It has 7 hospitals, 3 Surgical Centers, 2 Urgent Treatment Centers, 3 Musculoskeletal/Diagnostic Centers, 1 Ophthalmology Center with 330 bed capacity.
- it is 5th largest private healthcare network in the UK; and
- 4th largest NHS (National Health Service – government funded healthcare system) healthcare service provider in the UK.
- 93% of PP’s revenues are through NHS and only 7% through private pay
- PP is currently Owned by Bridgepoint, one of the world’s leading private market growth investors with $86 billion of AUM
- Financials
- FY25 revenues are estimated at GBP 250 mn and EBITDA at GBP 20 mn
- In last 5 years, revenues have grown at a CAGR of 12% and EBITDA at 12.5%
- The total consideration for the acquisition is GBP 188.78 mn valuing the Company at 9.2x FY25E EV/EBITDA
- GBP 150 mn would be funded through long term debt with tenor of 7 years
Rationale for acquisition include international expansion, committed NHS contracts, cost efficient operating model and bullish outlook on UK healthcare opportunity.