Capio AB (publ) has signed an agreement to initially acquire 70% of the shares in CFR Hospitaler A/S “CFR” in Denmark. The CFR Group comprises four specialized hospitals and four radiology units with estimated net sales in 2016 of MDKK 280. The acquisition of CFR represents a new market entry for Capio, adding to the Group’s Nordic home base and pan-European footprint for driving Modern Medicine and increased productivity in healthcare services.
CFR operates four hospitals, of which two are located in the Copenhagen region, one is located in Odense on Fyn and one in Skørping, North Denmark (Nordjylland). The Copenhagen hospitals represent approximately 70% of the CFR Group’s net sales. Specialized in orthopedics, spine surgery, gastrointestinal surgery, urology and ear-nose-throat disorders, CFR annually performs more than 80,000 consultations and 8,000 surgeries. In addition to the hospitals, CFR comprises four radiology units, one in each of the hospital facilities, offering MRI, mammography, ultrasound and X-ray diagnostic imaging. CFR is active in three out of five regions in Denmark.
Thomas Kiær, the founder and former main owner of CFR will continue as CEO of CFR Group after the acquisition and will remain as a shareholder of CFR.
“We are very pleased with the opportunity to acquire CFR Hospitaler, a well-established and professionally operated healthcare company. CFR matches Capio’s core medical specialties and shares our fundamental view of delivering high quality healthcare. I am looking forward to further developing CFR together with Thomas Kiær, his management team and medical staff”, says Thomas Berglund, President and CEO of Capio AB.
“We are very happy and look forward to being a part of the Capio Group in the future. We are well-established in Denmark, and have focused on delivering healthcare of highest medical quality for a long time. Together with Capio, we see an opportunity to continue this development with a very experienced and strong partner with a long track record of delivering good quality healthcare in several European countries. As CEO of the company, I look forward to being part of an experienced and well-managed international group focusing on high quality healthcare”, says Thomas Kiær, CEO of CFR.
The Danish healthcare environment is similar to the one in Sweden and other Nordic countries, with a growing share of elderly population and increased GDP spend on healthcare. The market for healthcare in Denmark is estimated to be worth approximately BDKK 105, with a small private hospital share of 2%. Denmark has come far in Modern Medicine with a high share of day surgery and short AVLOS (Average Length Of Stay), but has availability challenges and productivity can be further improved. Hence, the outsourcing of public contracts is expected to gradually increase in line with the development in other Nordic countries.
Enterprise value is MDKK 199 for 70% of CFR and Capio has the option to acquire the remaining 30% of the shares after two years. The acquisition is estimated to be closed and included in the Capio Group from January 2017. CFR is expected to have a positive impact on Capio’s earnings during 2017.
After the acquisition, Capio will have operations in five countries; Sweden, Denmark, Norway, France and Germany. The Danish operations will be included in the Nordic segment.
For information, please contact:
Thomas Berglund, President and CEO
Telephone: +46 733 88 86 00
Olof Bengtsson, CFO
Telephone: +46 761 18 74 69
Kristina Ekeblad, IR manager
Telephone: +46 708 31 19 40
This information is information that Capio AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:45 CET on December 21, 2016.