Germany: Fresenius buys NMC’s fertility business for €430m

Germany’s Fresenius has won the race to acquire Eugin Group, the fertility business of NMC Health for €430m (US$521.8m).

The business attracted 67 bids from large private equity players including HIG, Cinven, Bridgepoint, KKR and EQT.

“Eugin is highly profitable and holds excellent positions in attractive country markets,” said Fresenius chief executive Stephan Sturm explaining that it was a unique buy-and-build platform that offers substantial organic and non-organic growth opportunities.

“By bundling existing in- and outpatient services from our network, the new platform will serve as an accelerator for holistic and interdisciplinary patient care, while leveraging significant synergies,” he added.

Eugin Group’s network comprises 31 clinics and additional 34 sites in nine countries.

It had sales in 2019 of €160m and EBITDA of €31m. This year, EBITDA is expected to be in the range of €35m to €40m.

The transaction, Fresenius said, is expected to be highly accretive to net income this year. It added that it does not expect any meaningful integration expenses.

Eugin Group will form a new and separate Fresenius Helios business and reporting unit alongside Helios Germany and Helios Spain.

The purchase price will be financed from existing cash and credit lines.

The transaction is expected to close in the first half of the year.