Altamir - Registration Document 2016
FINANCIAL AND LEGAL INFORMATION Presentation and history of the Company
1
www.unilabs.com
1) Business description Unilabs is a leading pan-European diagnostics company, providing laboratory and radiology services to public and private healthcareproviders (hospitals, GPs, occupational health units), county councils, insurance companies and outpatients, as well as to the pharmaceutical industry and clinical research organisations. Unilabs is active in 12 countries (Denmark, Finland, France, Italy, Norway, Portugal, Spain, Sweden, Switzerland, the UK, UAE and Peru) with strongmarket positions in Switzerland, France, Iberia and Scandinavia. The laboratory business generates over 80%of EBITDA, mainly fromFrance, Switzerland and Scandinavia, and the medical imaging business generates the remainder. 2) Why did we invest? Unilabs offers a unique pan-European footprint with leading positions in its various markets, which enables the company to drivesignificanteconomiesofscale(forexample,inprocurement) and thereby offer lower prices than its competitors. In addition, Unilabs has pioneered the “hub and spoke” approach to lab testing in Europe and has greatly innovated to develop its best practices, which serves to increase the company’s efficiency. The European laboratory and radiology market is highly attractive, providing both strong growth in testing volumes and limited volatility. The market is characterised by its defensive nature and volume growth is ahead of population growth due to the introduction of new tests. 3) How do we intend to create value? External growth is an important source of value creation for Unilabs. There are significant opportunities for accretive add-on acquisitions in the fragmented European laboratories market, which is under reimbursement pressure from government payers, and where many less efficient operators are struggling to compete in a decreasing price environment. Governments across Europe will continue to outsource both laboratory and radiology provision, from which Unilabs, as a
scale player with significant experience in public tendering, will be able to benefit. 4) What has been achieved? Since investment, Unilabs has completed more than 70 acquisitions in Europe. In order to fund these acquisitions, the company set up a line of credit in 2011 and issued a €685mbond refinancing in 2013, in conjunction with a new revolving credit facility to continue to finance add-on acquisitions. Unilabsmanagement teamhas been significantly strengthened with recruitments of anewCEO, CCOandCFO. Themanagement team is now focusing on productivity improvement to offset the fall in reimbursement rates. 5) How is it performing? Owing to an increase in volume, in particular in France and Switzerland, and to the success of its cost-control programme, Unilabs generated 2016 revenue of €680m(3%organic growth) and EBITDA of €127m, up 13%. In September 2016, Apax assisted theCompanywith refinancing its existing debt to have greater flexibility to finance future acquisitions. Taking into account these items, the valuation of the investment in Unilabs gained €15.3m during the 2016 financial year. 6) How will we crystallise value? In February 2017, Apax France, Altamir and Nordic Capital sold their stake in Unilabs to the Apax IX LP fund. This divestment totalled €41.2m for Altamir, representing a multiple of 1.8 times the amount invested, and an uplift of 28% compared to the last valuation. Subsequent to that transaction, Unilabs announced the acquisition of Alpha Medical, leader in medical diagnostics in Slovakia and the Czech Republic, two significant Eastern European markets.
Sector
Country
Date of investment
Residual cost in €m
Fair value in €m
% of the portfolio at fair value
Switzerland
2007
22.5 41.2
4.7
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REGISTRATION DOCUMENT 1 ALTAMIR 2016
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