Target Information

Enterprise Investors is initiating a consolidation in the ambulatory healthcare sector with a significant investment aimed at modernizing and expanding healthcare facilities in medium and small cities across Poland. The Enterprise Investors Fund IX has earmarked over PLN 100 million for this effort, which seeks to create a profitable entity focused on delivering quality healthcare outside of major urban areas, while ensuring accessibility for local populations.

The project will commence with the acquisition of NZOZ Śródmieście-Biały Kamień located in Wałbrzych. This facility provides primary healthcare alongside specialist consultations across two locations. Additional transactions are currently being negotiated in other Polish cities, with plans to finalize these by early 2025. The clinics incorporated into this new structure will continue to serve their local communities as before, while simultaneously investing in modern infrastructure, IT tools, and expanding their services for patients.

Industry Overview in Poland

The healthcare industry in Poland has seen considerable growth and development in recent years, particularly in the context of an increasing demand for healthcare services. As the population trends towards aging, there is a heightened need for preventive and specialized healthcare services, notably in non-urban regions that often face accessibility challenges.

While major cities have experienced significant investment in healthcare facilities, smaller towns have generally lagged behind, lacking sufficient resources for quality medical care. This disparity presents an opportunity for consolidation and modernization initiatives to bridge the gap in healthcare services and improve overall community health outcomes.

Furthermore, Poland's healthcare system is undergoing transitional reforms regulated by government policies, which aim to enhance efficiency and quality of care. Investors are increasingly attracted by the potential for growth in the private healthcare sector, where government support and public-private partnerships are growing in prominence.

By focusing on ambulatory care, the initiative can capitalize on the rising trend of outpatient services that reflect patients' preference for receiving care in more accessible settings. This aligns with global healthcare trends, positioning the sector for innovation and improvement.

Rationale Behind the Deal

The primary rationale for the deal lies in the strong demand for and limited supply of quality ambulatory healthcare services in Poland's smaller cities. The investment aims to capitalize on this opportunity to build a robust entity that not only meets the healthcare needs of these communities but also generates sustainable profitability.

Furthermore, the consolidation of facilities enables the sharing of resources and expertise, resulting in enhanced operational efficiency and an improved patient experience through upgraded services and infrastructure.

Investor Information

Enterprise Investors (EI) is one of the leading private equity firms in Central and Eastern Europe, established in 1990. Over the years, it has developed ten funds that have collectively invested or committed to investing €2.3 billion across 158 companies, completing exits from 140 companies.

EI's extensive experience in the healthcare sector is evidenced by its previous successful investments, such as the growth of Nu-Med Group, which evolved from a single radiotherapy center to a top provider of oncological care with multiple locations nationwide. Recently, Nu-Med Group was acquired by Affidea, a major European medical service provider. Additionally, EI has recently invested in Scan Lab, Poland's largest digital dental prosthetics laboratory, showcasing its commitment to driving innovation and improving service quality within the healthcare landscape.

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The deal presents a promising investment opportunity within the healthcare sector by addressing market inefficiencies and improving service delivery in underserved regions of Poland. The focus on ambulatory care is particularly strategic, considering the evolving preferences of patients towards outpatient services.

Moreover, the strong track record of Enterprise Investors and its proven ability to drive growth and modernization in previous healthcare initiatives increases the likelihood of success for this consolidation project. Investing in infrastructure and IT tools will not only elevate the quality of care provided but also attract more patients to these facilities.

Overall, by enhancing accessibility and quality of healthcare services, this investment aligns with wider healthcare trends while potentially delivering substantial financial returns. As such, it could be viewed as a solid move for both the investor and the communities that will benefit from improved healthcare services.

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