Industry news: Medi-Clinic acquires Swiss hospital group

Consideration for the shareholding amounts to CHF2,846 million, equating to an enterprise value of CHF3,600 million.

Hirslanden is the leading private hospital group in Switzerland, comprising 13 private acute care facilities located in nine cantons. It currently operates 1 275 beds, providing admitting rights to some 1 400 specialists and employing over 3 600 staff.

Dr Edwin Hertzog, chairman of the Medi-Clinic Corporation Ltd, says this acquisition is in line with Medi-Clinic's strategic direction to geographically extend its core business of acute, specialist orientated hospital care.

“This acquisition is Medi-Clinic's first venture into Europe, providing us a firm footing and an excellent platform from which to expand as a truly international player,” Dr Hertzog says.

Hirslanden is a well respected group in Switzerland, with an unparallel service offering, high quality facilities and a solid history of operational efficiency.

For the year ended 31 December 2006, Hirslanden reported gross revenue of CHF907 million* and earnings before interest, tax, depreciation and amortisation of CHF206 million.

The Hirslanden group has been led by Dr Robert Bider, the chief executive officer since 1990. “For the first time Hirslanden has found a strategic long-term partner that shares the same focus,” he says.

“We believe this partnership holds great potential for the future,” Dr Bider says.

Dr Hertzog concludes by saying that the Medi-Clinic group has known Hirslanden and its management for a very long time, and is delighted that this transaction can finally be concluded.

Dr Edwin Hertzog, chairman
Louis Alberts, managing director
Gerhard Swiegers, financial director
+27 21 809 6500