General Healthcare

Activity
Hospital operator
Acquired
Jul 1997
Realised
Sep 2000
Sector
Healthcare

Business
General Healthcare was acquired in July 1997 from Compagnie Générale des Eaux (now Vivendi) for €998 million.

With Amicus, the fourth largest hospital provider in the UK, already in the portfolio, Cinven purchased General Healthcare, then the second largest, to create the number one private hospital provider in the UK.

Strategy
By combining the two businesses under the General Healthcare brand, Cinven created the clear market leader with 43 acute care hospitals and 11 psychiatric clinics. The new management team combined and unified the complementary skill sets of the two businesses.

Broader geographic coverage and a more comprehensive service improved the group's offer to its main clients and helped spread best practice. Synergies brought about by the merger resulted in savings and increased cash flow, whilst increased capital expenditure drove a successful organic growth programme.

Outcome
General Healthcare was sold in September 2000, realising a multiple of three times our investment.