Ramsay Health Care Agrees to Pay GBP775 Million for UK's Elysium -- Update

   By Stuart Condie 
 

SYDNEY--Ramsay Health Care Ltd. will enter the U.K.'s mental-health hospital market with the 775 million pounds (US$1.03 billion) acquisition of Elysium Healthcare.

The Australian hospital operator said it had agreed to acquire the mental healthcare provider from private-equity firm BC Partners and is funding the deal through existing debt facilities.

Ramsay said Elysium offers growth through utilization of its recently developed capacity and its development pipeline. There is also potential for bolt-on opportunities and collaboration with Ramsay's existing businesses in Australia, France, Sweden and the U.K., Ramsay said.

"The acquisition of Elysium will expand Ramsay's patient pathways into the 15 billion-pound U.K. mental health market at a time when more and more people are seeking support for mental health, learning difficulties and neurological issues," Ramsay Managing Director and Chief Executive Craig McNally said.

Ramsay already operates acute hospitals and day centers in the U.K. It failed in July with a 2.11 billion pound offer for Spire Healthcare, a deal it hoped would have provided geographic diversification.

It sees the acquisition of Elysium, which operates about 2000 beds across 72 sites, delivering mid-single digit EPS accretion in the 2023 fiscal year and a post-tax cash return-on-invested-capital of more than 10% within five years of completion.

Write to Stuart Condie at [e-mail]

(END) Dow Jones Newswires

December 12, 2021 17:11 ET (22:11 GMT)

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