Information on the Target

POLMED, founded in 1999, has established itself as one of the leading private healthcare service providers in Poland. With projected revenues exceeding €100 million in 2024, POLMED is known for its diverse range of services, including outpatient care, diagnostic imaging, inpatient services, and home rehabilitation. The company operates 38 facilities employing approximately 2,000 staff and collaborates with over 4,000 medical partners, serving more than 4 million patients annually and providing services to over 3,500 companies.

The upcoming acquisition of the KN Group further enhances POLMED's capabilities in the oncology sector. The KN Group comprises the Radom Oncology Centre, the Gamma Knife Centre, and the Radom Family Centre, positioned as a premier private oncology center in Poland since its establishment in 2011. This group operates three facilities in Radom and Warsaw, employing over 700 individuals and offering around 150 beds, including 14 chemotherapy chairs. Esteemed professionals, including internationally recognized neurosurgeon Prof. Mirosław Ząbek and Dorota Ząbek, will continue their leadership roles post-acquisition.

Industry Overview in Poland

Poland's healthcare sector has been evolving rapidly, primarily driven by increasing demand for quality healthcare services. The government is focused on improving healthcare infrastructure, which is crucial for patients' access to quality medical treatments. The Polish healthcare market is witnessing significant investment from both domestic and international players, aiming to enhance service provision and integrate modern technologies.

The private healthcare market, in particular, is growing due to rising patient expectations for quicker access and a broader range of treatment options. Consequently, private service providers like POLMED are capitalizing on this trend, offering competitive advantages over public facilities. The Polish government's efforts to reform the healthcare system also play a critical role in promoting private investment in this sector.

As part of this change, digitalization is becoming increasingly integral within healthcare services across Poland. Innovative solutions and technology-driven healthcare are gaining traction, driven by patient demand for more accessible and efficient services. This shift indicates a transformation in the healthcare landscape that providers must adapt to remain competitive and relevant.

Overall, there exists a favorable environment for investment in Poland's healthcare sector, with strong growth potential evident in various sub-sectors, especially as the country continues to embrace modernization and improvements in public health services.

The Rationale Behind the Deal

The strategic rationale for this investment focuses on POLMED's ambition to enhance its service offerings and cater to patient needs more effectively. The acquisition of the KN Group aligns with POLMED's goals of expanding its service spectrum and ensuring a superior patient experience during diagnostics and treatment. By adding specialized oncology services and advanced radiosurgery technology, POLMED aims to improve patient convenience, comfort, and treatment quality.

This investment reflects a broader trend of consolidation within Poland's healthcare sector, where partnerships between innovators and established providers can lead to a more integrated healthcare platform. This is vital as the industry adapts to the changing needs of patients and the healthcare system.

Information about the Investor

INVL Private Equity Fund II, the largest private equity fund in the Baltic region with a capital of €305 million, is managed by INVL Asset Management. The fund invests in high-growth companies across the Baltic states, Poland, Romania, and other EU nations, targeting sectors with significant potential for expansion. INVL Private Equity Fund II focuses on acquiring majority or significant minority stakes in promising companies, providing capital ranging from €10 million to €60 million.

International Finance Corporation (IFC), a member of the World Bank Group, supports this investment initiative with its mission to facilitate private sector growth in developing markets. With expertise in market development and financial backing, IFC aims to enhance healthcare infrastructure through strategic partnerships. Additionally, Accession Capital Partners (ACP), with over two decades of investment experience, plays a crucial role in executing this deal, leveraging its specialization in growth capital to support POLMED's expansion plans.

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This investment in POLMED presents an attractive opportunity for growth within Poland's dynamic healthcare market. The increasing demand for healthcare services combined with POLMED's robust operational structure and experienced leadership positions it well for future expansion. The planned acquisition of the KN Group aligns strategically with POLMED's mission to diversify its offerings and further enhance treatment capabilities.

Moreover, the involvement of seasoned investors like INVL, IFC, and ACP bodes well for POLMED's market positioning. These firms bring not only capital but also valuable industry expertise, which is expected to accelerate POLMED's development. This strategic partnership enhances the company's competitiveness in the evolving landscape of healthcare provision.

The acquisition also addresses a critical gap in oncology services, reflecting industry trends focusing on specialized healthcare delivery. The synergy between POLMED and KN Group is likely to create a comprehensive care approach that responds to the patient's holistic needs.

Overall, the deal is perceived favorably, as it opens new avenues for POLMED while reinforcing its status as a market leader. The expected outcomes from this partnership can positively impact the company's growth trajectory and investor returns.

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