Bupa, the international healthcare group, today announced its plan to acquire LUX MED Group (‘LUX MED’), the largest private healthcare provider in Poland, for €400m (£325.5m). LUX MED is currently owned by private equity firm Mid Europa Partners.
The deal will mark Bupa’s entry into Poland, one of the most attractive markets in Central and Eastern Europe due to the size of its population, rising levels of disposable income and long-term growth potential. Spending on healthcare is increasing and the private healthcare market is forecast to grow by 10% per annum until 2016.
LUX MED will make Bupa the number one player in Poland’s private healthcare funding and provision markets, adding one million new customers to Bupa’s international portfolio. In healthcare funding, LUX MED is Poland’s market leader in medical subscriptions, a corporate product offering employees rapid access to outpatient services. In provision, LUX MED has a national network of outpatient clinics and diagnostic centres, as well as a day hospital and a large nursing and residential care home in Warsaw.
The acquisition will extend Bupa’s international expertise in integrated healthcare. LUX MED joins up its medical subscriptions service and healthcare provision businesses to deliver end-to-end care for customers. Bupa believes there are significant advantages in integrating healthcare – bringing better oversight of the patient journey to help ensure that quality healthcare is delivered at an affordable cost. In Spain, Bupa already operates an integrated model between its insurance business and hospitals, outpatient clinics and dental centres.
Commenting on the acquisition, Stuart Fletcher, CEO of Bupa, said:
“Today’s transaction marks an exciting step in Bupa’s story. LUX MED will provide us with the number one position in Poland’s growing private healthcare market and an excellent platform for growth as the market develops.
“There is a strong alignment between Bupa and LUX MED, and the combination of our collective expertise in integrating and developing healthcare funding and provision services will fuel growth and innovation in healthcare in Poland.
“We are delighted to work with LUX MED’s management team to deliver high quality, accessible and affordable care to more people in Poland.”
Anna Rulkiewicz will continue to lead the business as Chief Executive Officer of LUX MED, supported by the existing senior management team.
The acquisition is expected to take between two and three months to complete and is subject to the approval of the Office of Competition and Consumer Protection in Poland and Sweden’s Financial Supervisory Authority.*