Medicover buys hospital in western Romania in EUR 23 million deal

Swedish group Medicover, one of the biggest private healthcare services providers in Romania, has acquired a majority stake in Spitalul Pelican, a major provider of healthcare services in Oradea, a city of around 200,000 people in north-western Romania. The agreement is for an 80% stake of the hospital and clinical business of Pelican. The value of the deal is of EUR 23 million, including purchasing price, debt, transfer of certain assets and investments in operations. The remaining minority shareholders are the founding surgeons, who will continue to be active in the business. The acquisition will turn Medicover into the leading private provider in the region, with a total catchment area population of some 1 million, the company said. The transaction is subject to approval by the Romanian Competition Council. Pelican has a fully-equipped hospital with 130 beds, 5 operating theaters, imaging diagnostics and supporting activities. It was established in 1992 by a team of surgeons. The company is currently undergoing an expansion process, with a 4,000 sqm new adjacent facility that will add 100 beds and a research facility. This will also cover areas such as interventional cardiology or 3D laparoscopic surgery. Pelican reported 2017 total revenues of EUR 15 million, with an EBITDA of EUR 3.7 million. Medicover operates in Romania through the Medicover clinic network and the Synevo test lab network. Medicover sees 19% revenue increase in Romania editor@romania-insider.com