Innova Capital sells its stake in Neomedic

Innova Capital, a leading private equity fund in CEE has signed an agreement with Medicover to sell its stake in Neomedic, a leading neonatology and obstetrics hospital group in southern Poland, in a EUR 70m deal. The transaction is subject to customary merger control approvals and is expected to close during Q2/19.

Innova Capital invested in Neomedic in Oct/2012 by taking over nearly 70% of its shares. This was another founder succession transaction executed by the fund in recent years. In line with its investment policy, Innova continued to collaborate with Neomedic founders to build the company’s value.

In 2018, Neomedic reported revenue of ca. EUR 28m. The transaction value implies a high single digit EBITDA multiple.

“The management of Neomedic is delighted that the Medicover Group will become the new owner of the Company. Medicover is present in Poland for many years and we value highly its experience in the healthcare sector, especially as the operator of the largest private hospital in Poland – the Medicover Hospital in Wilanów. We see a lot of benefits in exchanging know-how and working together to further expand the gynecology and obstetrics practices. We are looking forward to continuing our mission of growing the Company with their support. Our plans focus on strengthening of our offer in Kraków and the Małopolska region and we will also be looking for opportunities in other locations.”- says Tomasz Wiśniewski, CEO of Neomedic.

“We are very happy that after six years of intensive development of the company and diversifying its business, Neomedic will become part of a much larger structure of Medicover Group. This will allow for continued growth and development of the hospitals. The management of Neomedic and all employees have done an amazing job in the last few years, establishing leadership in both the range and the quality of specialist services offered.  We believe that this will benefit the patients in the region and the new owner of Neomedic for years to come. ” – says Leszek Muzyczyszyn, Senior Partner at Innova.

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About Neomedic:

Neomedic operates two large hospitals in Kraków and Nowy Sącz and one smaller private hospital in Krakow as well as outpatient and primary care medical centres. In 2018, 7,600 babies were born in its hospitals. The facilities provide highly specialized hospital care in neonatology, obstetrics, gynaecology and others. The main hospital in Kraków is one of only three “level 3” hospitals in this part of Poland, meaning one of the medically most advanced institutions, offering the highest level of specialty care for their field, dealing with the most medically demanding cases. The catchment area of Neomedic is in a strongly developing industrial and service area of Poland with good economic development, supporting the economy.

www.grupa.grupaneomedic.pl/

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About Medicover

Medicover is a leading international healthcare and diagnostic services company and was founded in 1995. Medicover operates many ambulatory clinics, hospitals, specialty-care facilities and laboratories and the largest markets are Poland and Germany. In 2017, Medicover had revenue around 580 million euro and 15,900 employees.

www.medicover.com

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About Innova Capital

Innova Capital is one of the leading Central European private equity funds investing in the medium-sized enterprises segment. Since the start of its operations, (1994) until now Innova Capital has invested nearly EUR 700 million in almost 50 companies operating in 10 countries of the region. In 2010, Innova Capital won the CEE Fund of the Year Award granted by Unquote for its fifth Innova/5 fund.

www.innovacap.com

Innova Partner contact:

Leszek Muzyczyszyn

Innova Capital

Tel.: +48 22 544 94 00

E-mail: lmuzyczyszyn@innovacap.com

Media contact:

Katarzyna Kaczmarek

Innova Capital

Tel.: +48 22 544 94 00

E-mail: ir@innovacap.com