Doughty Hanson bought the company for a nine times multiple of this year’s EBITDA forecast from Barclays and Royal Bank of Scotland. Rothschild advised the firm on the transaction.
USP Hospitales is the third largest private hospital operator in Spain, with a market share of 5.5 per cent in 2010, and is focused on the provision of hospital services to the private insurance and self-pay segments. USP operates 12 hospitals, one specialist clinic and 22 auxiliary clinics, with a total of over 1,200 beds.
The operator is present in nine out of Spain’s 17 regions and has a strong presence in Barcelona, Madrid and Seville. USP offers a range of services covering all medical specialties, with a particular strength in trauma, gynaecology, oncology, cardiology, neurosurgery and internal medicine.
Francisco Gutiérrez Churtichaga, a senior principal at Doughty Hanson, said, “USP is a strong company operating in an attractive sector. With demand for private healthcare services growing strongly in Spain, we not only see significant potential for future growth but also believe that the company offers a unique platform from which to create a larger hospital group providing the right combination of technology and premises to deliver the best possible care to the private patient.
“Doughty Hanson has a proven track record of value creation in the healthcare sector and this will be invaluable in helping USP to achieve its full potential.”
Doughty Hanson developed expertise in the private healthcare sector following its investment in Priory in 2002. At the time of the acquisition, it was the largest independent provider of mental health and rehabilitation services in the UK.
Under the firm’s ownership it had a national presence with over 42 locations, over 2,000 beds and nearly 4,500 staff. Priory was sold in July 2005 in a transaction valued at £875m and delivered a 3.9 times return on capital invested.
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