Carlyle-TPG partnership wins Healthscope auction


After weeks of speculation, Healthscope has finally agreed on a buy-out by US private equity giants The Carlyle Group and TPG Capital, in a deal that values the Australian private healthcare provider at AUS$2.7bn ($2.35bn).

The AUS$6.26 ($5.45) per share offer represents a 39 per cent premium to the company’s closing price on 13 May – the day before Healthscope announced that a then unnamed buy-out consortium had made an offer.

The board has unanimously recommended that shareholders accept the offer from the Carlyle-TPG partnership.

Previously in the running to buy the company was KKR, with CVC reported to have discussed joining the New York buy-out group to form a rival consortium to the Carlyle-TPG team.

Healthscope, Australia’s second largest private hospital provider, runs 44 sites and includes a pathology business. The company also has a growing medical-centres division, with over 45 clinics, and a diagnostic imaging division centered in major hospitals.

The Healthscope deal, one of the biggest private equity deals in Australia since the downturn, indicates a recovery for the industry in the country and comes as the wider market appears to gradually be returning to health.

The win for TPG follows a penalty it was hit with at the end of last year that saw the Australian Taxation Office (ATO) claim unpaid taxes on a landmark deal. The ATO claimed that TPG failed to pay AUS$452m ($393.7m) in capital gains tax on the $2.2bn sale of department store chain Myers, and fined the private equity firm a further AUS$226m ($196.8m).

TPG said at the time that it had complied with Australian tax laws at all times.

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