Healius sells Montserrat Day Hospitals
Healthcare provider Healius is selling its Montserrat Day Hospitals business – which includes the management of eight hospitals and three haematology and oncology clinics – for up to $138.6 million.
Nexus Hospitals in the buyer; with the deal, the QIC arm will control 29 facilities underpinned by potentially over 700 surgeons.
It will also become the country’s largest day hospital platform.
Healius paid $122m for Montserrat Day Hospitals in 2018.
The disposal sum is considered enterprise value. Just over $11m of it is deferred and conditional.
Nexus expands
QIC purchased its majority stake (75 per cent) of Nexus Hospitals three years ago; at the time the healthcare group was Australia’s second largest biggest day hospital platform, operating from six states and territories.
With the Montserrat deal, it will top the list – replacing Cura Group, which in 2020 became a subsidiary of Fresenius Medical Care Australia.
The assets include Rosemont Endoscopy Centre and Warringah Day Surgery, in New South Wales, North Lakes Day Hospital, North Lakes Haematology & Oncology, Samford Road Day Hospital (pictured, top), Sunshine Coast Haematology & Oncology, Westside Haematology & Oncology and Westside Private Hospital (Queensland) and the Albany Day Hospital and Bunbury Day Hospital (Western Australia).
Montserrat Day Hospitals
Healius will now focus on its diagnostics enterprise, expected to operate within some of the businesses and properties it just sold (story continues below).
It will also continue to operate pathology services at Nexus’ facilities.
“The valuation achieved reflects the quality of the Montserrat business and its long-term growth potential notwithstanding recent challenging trading conditions during the COVID pandemic,” outgoing Healius managing director and chief executive officer, Malcolm Parmenter, said.
“Importantly, the sale of Montserrat is in line with our strategy to focus on the growth of our diagnostics business,” he added.
“The proceeds of the sale will enable us to strengthen our balance sheet during this transition period as we reset our cost base and operating model for the post-pandemic and over time, deploy capital in growth opportunities,” according to the executive.
The deal is scheduled to to settle before June 30.
“Healius will continue to provide pathology services across a number of existing Montserrat facilities with potential to expand the provision of diagnostic services within Nexus Hospitals,” Mr Parmenter said.
“In alignment with its own sustainability vision, Healius is in discussions with QIC regarding particularly in the latter’s upcoming green power purchase agreement process,” he added.
“If successful, Healius expects to benefit from QIC’s larger scale to secure more attractive terms for the provision of renewable energy,” according to the executive.
Gresham Partners represented Healius.
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