Target Information

On August 20, 2024, Polish Enterprise Fund VII, managed by Enterprise Investors (EI), announced the completion of its investment in Nu-Med, a network of clinics specializing in oncology radiotherapy. The group will be acquired by Affidea, a pan-European provider of specialized medical services, including oncology care and advanced imaging diagnostics, which operates several local polyclinics across Poland. The transaction is pending approval from the Office for Competition and Consumer Protection.

EI's collaboration with Nu-Med began in 2013 when PEF VII acquired a substantial minority stake in a radiotherapy center in Elbląg. Prior to this, in 2012, the fund had already invested in a radiotherapy project in Katowice. Over the years, both medical centers have been unified under the Nu-Med brand, leading to the establishment of two additional diagnostic and therapeutic centers in Tomaszów Mazowiecki and Zamość.

Industry Overview in Poland

In recent years, the healthcare sector in Poland has experienced significant growth, driven by increasing healthcare expenditures and a rising prevalence of chronic diseases, including cancer. Oncology services are particularly critical as cancer remains the second leading cause of death in the country. The World Health Organization reports approximately 170,000 new cancer cases and nearly 100,000 cancer-related deaths annually in Poland.

As the demand for high-quality healthcare services continues to rise, the private healthcare sector is becoming a pivotal player in delivering timely and efficient care. The proliferation of private clinics and hospitals has improved access to essential services, including advanced diagnostics and specialized treatments.

Moreover, the Polish government has made substantial investments in healthcare infrastructure and technology, aiming to align with international standards. Initiatives such as the National Oncology Strategy reflect a commitment to enhance cancer care, promoting prevention, early diagnosis, and integrated treatment approaches.

Furthermore, with an increasingly health-conscious population, the integration of private providers like Nu-Med into larger networks such as Affidea is expected to lead to improved care pathways and better outcomes for patients across the country.

Rationale Behind the Deal

The investment by Enterprise Investors in Nu-Med exemplifies a dedication to fostering value in the healthcare sector within Poland. This acquisition marks a significant milestone for both Nu-Med’s growth and Enterprise Investors' strategic investment direction in this critical industry segment. During its investment period, Ei facilitated healthcare services for nearly 70,000 patients, highlighting the positive social impact of its involvement.

The sale to Affidea ensures that Nu-Med will continue to provide comprehensive oncology care as part of a renowned international organization, thereby enhancing service delivery and operational efficiencies across its clinics.

Information about the Investor

Enterprise Investors is one of the largest private equity firms in Central and Eastern Europe, with an operational history dating back to 1990. The firm has launched ten funds, which have collectively invested or committed to invest a total of €2.3 billion in 156 companies, successfully exiting from 140 companies. This extensive experience and substantial investment strategy reflect Enterprise Investors' resilience and commitment to sectoral growth.

Affidea Group, founded in 1991, specializes in imaging diagnostics and operates a network of local polyclinics delivering specialist healthcare, including oncology services. Currently, Affidea manages 366 centers across 15 countries, serving nearly 14 million patients annually. With Groupe Bruxelles Lambert (GBL) as its majority shareholder, Affidea focuses on long-term value creation backed by loyal family shareholders.

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The acquisition of Nu-Med by Affidea represents a strategic move within the growing oncology sector in Poland, addressing the urgent need for enhanced cancer care capabilities. This investment is likely to yield significant returns not only for Affidea but also for the broader healthcare landscape, as it fosters comprehensive solutions tailored to patient needs.

Bringing Nu-Med into the Affidea network allows for synergistic integration of services, enhanced clinical collaborations, and shared resources that can lead to improved patient outcomes. Given the high incidence of cancer in Poland and ongoing demand for specialized healthcare, this expansion fits well within Affidea’s mission and objectives.

From a financial perspective, investing in a well-established brand like Nu-Med, which has demonstrated solid financial performance with revenues of PLN 258 million in 2023, is a sound decision. The strategic positioning of Nu-Med within the oncology service realm not only strengthens Affidea's market presence but also aligns with long-term growth forecasts for the healthcare sector.

In conclusion, this acquisition is a commendable investment for Affidea, promising progressive advancements in oncology services while extending vital healthcare solutions to a significant segment of the Polish population.

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