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Mehiläinen and Carema join forces to create leading Nordic healthcare entity

29/03/2006

On 17th March 2006 it was announced that H-Careholding AB, owner of the Swedish company Carema Vård och Omsorg AB, a leading Nordic provider of private healthcare services within the public sector,  has signed an agreement with funds managed by CapMan Capital Management Ltd, Sitra, the Finnish National Fund for Research and Development, and other key shareholders to acquire 72 per cent of the shares in Mehiläinen Oyj, a Finnish company providing private healthcare services. According to a statement, the offer values Mehiläinen at EUR 152 million. Completion of the transaction is subject to approval by the competition authorities.

According to a Mehiläinen press release, Mehiläinen and Carema will together form an entity with annual sales of EUR 468 million which has leading positions in both the Swedish and Finnish private healthcare markets. The combined entity will also be one of the largest community healthcare companies in Europe with a full service offering in both the healthcare and care services sectors. Both businesses will continue to operate under their own brands.

“Clear industry logic and a perfect match”

Commenting on the announcement, Matti Bergendahl, Mehiläinen’s CEO, said ”Mehiläinen and Carema constitute an excellent fit. Mehiläinen is the market leader in Finland with the strongest brand, a nation-wide network and a comprehensive service portfolio. We will continue our business as usual and strive to offer even better service to our customers in the future.” Ralph Riber, Carema’s CEO, said “I am very pleased with today’s agreement. Mehiläinen will add in-depth knowledge and credibility to Carema’s specialist care business, while Carema’s expertise in public outsourcing can facilitate growth in Finland.” Peter Weiderman, Chairman of H-Careholding and Carema, said ”I believe that the combined Carema-Mehiläinen entity follows clear industry logic, and is thus a perfect match. The new entity will, from the start, be a leading player in the Nordic arena.”

Mutual exploitation of strengths and specialist know-how

In a separate press release, Ilkka Kouvonen, a Business Director with Sitra, said “We wanted to participate in studying and developing new operating models and structures in healthcare. The aim was to create a sufficiently comprehensive and credible private alternative. Mehiläinen has developed into a credible and strong alternative to private customers, a professional and cost-effective actor in occupational healthcare, and a reliable partner to the public sector.”

Tuomas Lang, a Senior Partner with CapMan and Chairman of Mehiläinen, said “We are very pleased with the transaction announced today. It enables mutual exploitation of the strengths and specialist know-how of both companies. The united entity will form a leading player on the Nordic private healthcare market. The new owner has good resources to continue the development of Mehiläinen's business and the strengthening of its position as the market leader in Finland.”

Founded in 1909, Mehiläinen is a leading provider of healthcare services throughout Finland. Net sales in 2005 totalled EUR 97.4 million, the company employs 1,050 people and has 1,800 physicians. Mehiläinen’s nation-wide service network comprises 17 outpatient clinics, seven hospitals, and occupational healthcare units. 

Founded in 1996, Carema has operations in Sweden, Finland and Norway and provides primary care, specialist care, elderly care and care for the disabled. Pro forma net sales in 2005 totalled EUR 350 million and the company employed 4,900 people (full-time equivalent). Shareholders in H-Careholding AB, Carema’s owner, include the company's management as well as the private equity investor 3i and the Government of Singapore.

Further information:

Mehiläinen Oyj:http://www.mehilainen.fi/dynamic/eng/index.php?module=LangNews&func=display&lid=39

Carema Vård och Omsorg AB:http://www.carema.se/topmenyenglish/carema/aboutcarema.4.7e87e35a108e7593e71800011028.html

Sitra:http://www.sitra.fi/en/News/release_2006-03-17.htm

Capman:http://www.capman.com/En/Media/Releases/CapMan_exits_from_Mehilainen.htm