China-based Luye Medical Group has entered an agreement to acquire Australian private hospital operator, Healthe Care, from private-equity owner Archer Capital for A$938m ($688m).
The deal marks Luye Medical’s first entry into the overseas hospital sector to help meet higher demands on China’s healthcare sector.
Healthe Care was acquired by Australian firm Archer from CHAMP Private Equity in 2011 for A$230m. It is the third largest corporate private hospital operator in Australia and one of the country’s largest privately owned healthcare companies.
Operating a portfolio of 17 hospital sites in major cities and key regional areas across Australia, Healthe Care has over 1,800 beds, more than 50 operating theatres and 4,500 employees.
Luye chairman Liu Dian Bo said: "I strongly believe that Healthe Care will provide us with a platform upon which we can build a world class and highly successful healthcare services business not only in Australia and China, but also in many other countries in Asia."
Luye Medical currently comprises a network of healthcare service facilities across major cities in China, focusing on key therapeutic areas, including rehabilitation nursing, plastic surgery, postpartum nursing, geriatric medicine and dentistry.
Archer Capital was advised by Luminis Partners, Morgan Stanley and Allens. Luye Medical was advised by Barclays and Ashurst.
The transaction is expected to complete in the first quarter of 2016.