The $1.7 billion deal will put the private equity firms in charge of the Australian private-hospital operator. The agreement comes on the heels of several well-publicized private equity takeovers of U.S. hospitals, including Vanguard’s acquisition of Detroit Medical Center and Cerberus Capital Management’s acquisition of Boston-based Caritas Christi.
Hospital transaction activity is also taking place in Asia. TPG previously held a minority stake in a Singapore-based hospital operator, Parkway Holdings, which it sold to India’s Fortis Healthcare for $685 billion in March. A Malaysian wealth fund is also currently attempting to acquire a majority share of Parkway.
As developing countries become more affluent, the demand for high-quality healthcare has grown, making investment in hospital operators in these countries attractive. The facilities also profit from medical tourism, as the costs of procedures in these countries can be far less than the cost of the services in the U.S.
Read the Star Tribune report on international hospital transactions.
Read more about hospital M&A activity:
– Report Finds Spending on Healthcare Mergers and Acquisitions Rises in Third Quarter; Hospital Transactions Surge
– 6 Most Compelling Factors for Private Equity Investors
– 6 Most Compelling Factors for Private Equity Investors
