Strategic Acquisition Overview
In a groundbreaking move, PureHealth Holding PJSC, the largest healthcare group in the Middle East, has announced its intention to acquire a 60% stake in the Hellenic Healthcare Group (HHG), from funds managed by CVC Capital Partners and Management for €2.2 billion (USD 2.3 billion). This acquisition marks a significant entry of an Abu Dhabi player into the Greek private healthcare sector, underscoring PureHealth’s strategy to diversify its operations beyond the GCC.
Growth and Capacity of HHG
HHG has demonstrated remarkable growth, operating a network of 10 hospitals and 16 diagnostic centers across Greece and Cyprus, with over 1,600 beds and a team of more than 6,700 healthcare professionals. The group serves approximately 1.4 million patients annually, offering a comprehensive range of medical services, including specialized care in oncology, cardiology, and neurosurgery, alongside advanced services such as IVF treatments conducting over 6,000 cycles each year.
Ownership Structure
The current ownership structure of HHG includes 90% held by CVC Capital Partners VI and 10% by CEO Dimitris Spyridis. Following the completion of the transaction, CVC Capital Partners VI and HHG Management will retain a 40% stake in HHG. Specifically, CVC will retain a 35% stake, while Mr. Spyridis will maintain a 5% share in the company. This partnership will enable HHG to leverage the combined expertise, resources, and global networks from both PureHealth and CVC, fostering operational excellence and creating additional opportunities in the healthcare sector.
The successful closing of the transaction is subject to regulatory approvals and customary conditions. More details will be provided upon completion.
Market Opportunities
The healthcare markets in Greece and Cyprus present considerable growth potential, marked by a high percentage of out-of-pocket spending and increasing demand for private healthcare solutions. This strategic acquisition aligns with PureHealth’s broader expansion strategy as it seeks to leverage its scale and innovations to enhance HHG’s operational and financial performance.
Statements from PureHealth Leadership
Hamad Al Hammadi, Chairman of PureHealth , remarked, “Our collaboration with international leaders like CVC highlights PureHealth’s ability in driving growth at scale. The expansion into Europe through Hellenic Healthcare Group strengthens our position as a global healthcare leader and our commitment to delivering transformative care and setting new standards of excellence globally.”
Shaista Asif, CEO of PureHealth Group, added, “This acquisition represents a significant milestone in PureHealth’s strategic expansion, reinforcing our presence in Europe and further solidifying our position as a leader in healthcare. Integrating HHG into our portfolio not only reinforces our position in Europe but also creates significant value for our group by contributing to revenue diversification, driving operational synergies, and strengthening our financial performance. This move aligns with our vision of becoming a global leader in healthcare, with more than 50% of our revenues originating outside the GCC.”
Strategic Partnership and Future Growth
CVC Capital Partners VI and the management team of HHG will continue as strategic partners, retaining a combined 40% stake to support the company’s growth trajectory. Alex Fotakidis, Partner and Head of Greece at CVC , stated, “HHG’s transformation under CVC reflects our unwavering commitment to creating value and fostering growth in our portfolio companies. We have a very strong management team who have built a quality organisation and we, together with our partners are looking forward to expanding the HHG platform to deliver better value to our patients. Partnering with PureHealth brings us closer to achieving our growth ambitions and making a meaningful impact on the communities we serve”.
Dimitris Spyridis, CEO of HHG, expressed his excitement about the transition, stating, “We are proud of the group we have built and the quality of services we offer our clients and patients across the HHG network. We are excited about this next chapter with PureHealth as our majority shareholder as we continue to invest in our people, technology and facilities with the goal of further establishing HHG as the premier private healthcare services provider in the region”.
Recent Expansions by PureHealth
In recent years, PureHealth has consistently expanded its portfolio, including the acquisition of Circle Health Group, the UK’s largest independent operator of hospitals, for approximately USD 1.2 Billion , and a 26.05% stake in Ardent Health Services for USD 500 million in 2022. These strategic moves further highlight PureHealth’s ambition to diversify its revenue streams and deliver world-class healthcare solutions on a global scale, reinforcing its position in the international healthcare market.
HHG Portfolio Highlights
The HHG includes the following facilities:
- Υγεία (Hygeia Hospital)
- Metropolitan Hospital
- Μητέρα (Mitera Hospital)
- Metropolitan General
- Λητώ (Leto Hospital)
- Creta InterClinic in Crete
- City Hospital in Kalamata
- Apollonion Private Hospital in Cyprus
- Αρεταίειο (Aretaeio Hospital) in Cyprus
Moreover, HHG operates several diagnostic centers:
- HealthSpot
- Πlaton Δiagnosis
- Πρόγνωσις (Prognosis)
- Δημόκριτος, (Demokritos, Diagnostic Radiology Centre)
Additionally, HHG offers home healthcare services through Homecare , and operates a Molecular Biology and Genetics Laboratory named A-Lab. It also includes the Υγεία IVF embryogenesis Assisted Reproduction Unit, Y-Logimed, and GMP, which are engaged in marketing medical technology products. The group further encompasses Business Care, providing occupational health and safety services to organizations, along with the Healthcare Education and Advanced Learning Academy (HEAL) dedicated to training, retraining, and research in medical, nursing, and health science fields.
Source: CVC Capital Partners
