Mediclinic International plc
(Incorporated in England and Wales)
Company Number: 08338604
LSE Share Code: MDC
JSE Share Code: MEI
NSX Share Code: MEP
("Mediclinic", the "Company" or the "Group")
4 September 2018
MEDICLINIC ANNOUNCES THE COMBINATION OF HIRSLANDEN CLINIQUE LA COLLINE AND CLINIQUE DES GRANGETTES PRIVATE HOSPITAL IN GENEVA, SWITZERLAND
Mediclinic International plc, the international private healthcare services group, announces that its Swiss operating division, Hirslanden, has reached agreement to combine Hirslanden Clinique La Colline with Clinique des Grangettes in Geneva, Switzerland, with Hirslanden retaining a 60% controlling interest in the combined entity.
Clinique des Grangettes is a leading private hospital in Geneva offering a wide range of medical services, specialising in maternity care, specialised surgery, cardiology, oncology, paediatrics and radiology. This highly-regarded hospital, established 100 years ago, has a long-standing reputation in the Geneva area with its state-of-the-art campus complex providing access to extensive outpatient treatments and leading diagnostic and therapeutic equipment. The hospital is supported by around 450 affiliated independent doctors and attracts around 92% supplementary insured inpatients and derives around 47% of its revenue from outpatient activities. The current owner of Clinique des Grangettes, Mr Philippe Glatz, will serve on the board of the combined business whilst members of the senior management team, including Mr Gilles Rufenacht, the current hospital director, and senior clinical staff will remain with the combined entity.
The combination of Clinique des Grangettes with Hirslanden Clinique La Colline will allow Hirslanden to establish itself as the number one private healthcare service provider in Geneva, strengthen certain medical fields currently not provided by Hirslanden and deliver operational synergies and cost efficiencies. The transaction will be accretive to Hirslanden's earnings and EBITDA margin with the opportunity to further enhance the returns through optimised purchasing and logistics, administrative efficiencies and future growth.
Mediclinic will combine the operating companies of Hirslanden Clinique La Colline and Pidji Healthcare Ltd, the holding company for the Clinique des Grangettes group of companies, and pay a cash consideration of CHF68m (GBP54m) to Mr Philippe Glatz for a 60% interest in the new combined company. Mediclinic and Mr Philippe Glatz will have call and put options, respectively, on the remaining 40% interest in the combined company. The options shall be exercisable after 4 years and the consideration on exercise will be determined based on the profitability of the combined company at that time. The transaction is subject to competition approval in Switzerland with an effective date of the combination expected to be from October 2018, following which Hirslanden will consolidate 100% of the financial contribution from Clinique La Colline and Clinique des Grangettes.
Dr Ole Wiesinger, CEO of Hirslanden, commented:
"This combination is in line with Hirslanden's Grow2020 strategy to increase the diversification of our highly specialised services across the full continuum of care. We are excited to combine Clinique des Grangettes, a state-of-the-art leading private hospital in Geneva, with our existing Hirslanden Clinique La Colline. Both hospitals benefit from the attractive private healthcare market in the Canton of Geneva. Mr Glatz and his team at Clinique des Grangettes have built a strong clinical reputation in Geneva and we look forward to working with them in the future. The combination of the two hospitals will further cement Hirslanden's position as the leading private healthcare service provider in Switzerland."
Philippe Glatz, Owner of Clinique des Grangettes, commented:
"The partnership's goal of both our institutions is to offer our patients the possibility to instantly get suitable and cost-effective care in one location, whatever highly specialised medical treatment or field the patient may need. Together with the high-level medical experts who make the quality of our establishments, the two clinics strengthen their capacity to concretely contribute to the development of the medicine of the future, which will embed all the progress and recent scientific research discoveries."
About Pidji Healthcare Ltd
Pidji Healthcare Ltd is the holding company of Clinique des Grangettes.
About Clinique des Grangettes
Clinique des Grangettes is a leading private hospital in Geneva offering a wide range of medical services, specialising in maternity care, paediatrics, cardiology, oncology, radiology and emergency care. This highly-regarded hospital, established 100 years ago, has a long-standing reputation in the Geneva area with its state-of-the-art campus complex providing access to an extensive inpatient surgery unit and leading diagnostic and therapeutic equipment. The hospital is supported by around 450 affiliated independent doctors and its staff represents more than 500 employees.
For the year ended 31 December 2017, Clinique des Grangettes reported net revenue of CHF115m (GBP91m), EBITDA of CHF25m (GBP20m) and profit before tax of CHF22m (GBP17m). Clinique des Grangettes reported consolidated gross assets of CHF66m (GBP52m).
About Hirslanden Clinique La Colline
Hirslanden Clinique La Colline is a 67-bed hospital located in central Geneva. The hospital offers a range of multidisciplinary inpatient and outpatient medical and surgical services. Some 300 members of staff and some 100 affiliated doctors. The hospital has an outpatient and long-term care unit, a polyclinic, and endoscopy unit and six operating theatres. Specialising in orthopaedic surgery and traumatology, neurosurgery, and gastrointestinal surgery, the hospital is able to offer more than 20 centres of expertise and approximately 30 medical and paramedical specialities.
For the year ended 31 March 2018, Hirslanden Clinique La Colline reported net revenue of CHF68m (GBP54m), EBITDA of CHF18m (GBP14m) and profit before tax of CHF13m (GBP10m). Hirslanden Clinique La Colline reported consolidated gross assets of CHF40m (GBP32m).
The GBP equivalent has been calculated using the GBP/CHF spot exchange rate on Friday, 31 August 2018 of GBP1: CHF1.26.
About Mediclinic International plc
Mediclinic is an international private healthcare services group with operating divisions in Switzerland, Southern Africa (South Africa and Namibia) and the United Arab Emirates. Its core purpose is to enhance the quality of life of patients by providing acute care, specialist-orientated, multi-disciplinary healthcare services. Mediclinic also holds a 29.9% interest in Spire Healthcare Group plc, an LSE-listed and UK-based private healthcare group.
Mediclinic comprises 74 hospitals and 28 clinics. Hirslanden operates 17 private hospitals and 4 clinics in Switzerland with more than 1 800 inpatient beds; Mediclinic Southern Africa operates 48 hospitals and 2 day clinics throughout South Africa and 3 hospitals in Namibia with more than 8 100 inpatient beds in total; and Mediclinic Middle East operates 6 hospitals and 22 clinics with more than 700 inpatient beds in the United Arab Emirates.
Mediclinic has a primary listing on the Main Market of the LSE in the United Kingdom, with secondary listings on the JSE in South Africa and the NSX in Namibia.
For further information, please contact:
Investor Relations, Mediclinic International plc
James Arnold, Head of Investor Relations
+44 (0)20 3786 8181
Frank Nehlig, Head of Corporate Communications
+41 44 388 75 85
Brett Pollard/Debbie Scott - UK
+44 (0)20 3727 1000
Sherryn Schooling - South Africa
+27 (0)21 487 9000
Registered address: 6th Floor, 65 Gresham Street, London, EC2V 7NQ, United Kingdom
Joint corporate brokers: Morgan Stanley & Co International plcand UBS Investment Bank
JSE sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)
NSX sponsor: Simonis Storm Securities (Pty) Ltd