InMedica and MediCA Group achieved the largest merger of health clinics in Lithuania

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Invalda INVL

Leading private medical chains InMedica and MediCA Group completed the largest merger in the history of Lithuanian health clinics to date.

Kęstutis Broniukaitis, Founder and CEO of InMedica, commented:
“Thanks to our network of 70 clinics, which is the largest in Lithuania, we are closer to our customers, who benefit from a wide variety of healthcare services. Today we have 2,700 highly qualified specialists working in 20 Lithuanian cities, assisting patients on a daily basis. Despite our status as a leader, with a combined turnover of around €90 million, we remain a small player in a 3 billion euros health market after the merger. While we serve 7% of the Lithuanian population, our market share in terms of revenue is only 3%. Public clinics have made significant investments in recent years to improve the quality of services and, at the same time, new clinics are being actively opened by private actors. We aim to continue this trend of being highly competitive in terms of service quality and accessibility while being an attractive place to work for doctors and healthcare professionals.

According to the CEO of InMedica, the next chapter of growth will focus on improving the quality of service, including the continued purchase of modern state-of-the-art equipment, the development and renovation of premises at existing sites, the upgrade of overall IT capacity and customer satisfaction management functions.

After the transaction, one of the largest private equity funds in the Baltic, INVL Baltic Sea Growth Fund (through its special purpose vehicle “BSGF Sanus”), remains the largest shareholder with a stake of 45 % of shares in InMedica, of which 40% is held by the largest Latvian private medical group Repharm and the remaining 15% is held by Lithuanian company Litgaja (the holding company of founder and CEO Kęstutis Broniukaitis). The business will be managed by a joint management team comprised of professionals from the MediCA Group and InMedica.

Nerijus Drobavičius, Partner at INVL Baltic Sea Growth Fund, commented:
“The core mission statement of INVL Baltic Sea Growth Fund, our private equity platform, is to provide capital support and operational expertise to local businesses to help them achieve their ambitious strategic growth plans. We invested in InMedica in 2019, when the company was generating around €10 million in revenue. We are therefore delighted that after only 3 years of working alongside Founder and CEO Kęstutis Broniukaitis, together we have significantly increased the number of active practicing clinics, both organically and through add-on acquisitions, and have now succeeded in reaching an agreement with Repharm, the most successful healthcare group in Latvia, to merge our Lithuanian activities. We are convinced that this partnership will ultimately lead to more services offered to patients. »

Stella Lapina, chairman of the board of directors of VCA, the health services arm of AS Repharm, believes that this is a new impetus for the health sector following the adverse effects of the pandemic. It will increase the quality of patient services, overall efficiency and make health care more accessible to local communities, including those in underserved and remote areas. In addition, the partnership with a leading and most successful private equity fund in Lithuania, in the form of INVL Baltic Sea Growth Fundwill allow a substantial increase in investments in the improvement of services and the opening of new clinics.

According to MediCA Group Director Aleksejs Tjurkins, “the consolidation of MediCA Group and InMedica will provide an opportunity to provide better quality service to people all over Lithuania as well as to accelerate the development of new areas of medicine.

This complex operation was financed by the Luminor bank. “The pandemic has made us appreciate even more the importance of access to high quality health services. Therefore, we are pleased to support the expansion of MediCA and InMedica Groups in the Baltic market with funding to promote access to professional and high-quality medical services, thus helping to improve the health of the Baltic population,” says Andrius Načajus, head of Luminor’s Corporate Banking division in the Baltic States.

A year-and-a-half-long merger of two leading private medicine networks, InMedica and MediCA Group, would not have materialized without the professional assistance of both sides of the deal. InMedica was represented by TGS Baltic (legal), Deloitte (financial) and Copenhagen Economics (advisory). MediCA Group was represented by Baltic Partners (M&A advisory), Cobalt (legal) and RM Legal (legal). The whole process was supervised by the Competition Council of the Republic of Lithuania and the Competition Council of the Republic of Latvia, with the advisory services of Hortus Investment Banking, Greenlex, Konrema and Spigulis & Kukainis.

INVL Baltic Sea Growth Fund

INVL Baltic Sea Growth Fund, with a total size of €165 million, is the leading private equity fund in the Baltics, with the European Investment Fund (“EIF”) acting as lead investor.

The EIF has committed €30 million with support from the European Fund for Strategic Investments, a key part of the Investment Plan for Europe (or “Junker Plan”), as well as allocation of resources from Baltic Innovation Fund, the “Fund of Funds” developed in cooperation with the governments of Lithuania, Latvia and Estonia. The aim is to increase capital investments in small and medium-sized enterprises with high growth potential in the Baltic States .

The Fund seeks to build a diversified portfolio of companies, targeting transactions with significant majority or minority shareholdings and writing tickets of €10-30 million, which exhibit high growth potential and the ability to compete on a truly global.

The Fund focuses on the Baltic States and neighboring regions of Poland, Scandinavia and Central Europe in particular. The Fund has so far invested in five companies in the sectors of healthcare, civil engineering, environmental management (plastic recycling and waste management) and the manufacture of cosmetics and hygiene products.

The Fund is managed by one of the leading asset management companies in Lithuania, INVL Asset Management, which is part of the Invalda INVL group. Group companies manage pension funds and mutual funds, alternative investments, individual portfolios, private equity assets and other financial instruments. More than 250,000 clients in Lithuania and Latvia and international investors at the end of the third quarter of 2021 have entrusted the group with more than €1.5 billion in assets under management. Active since 1991 and with a strong track record, Invalda INVL has 30 years of experience managing private equity assets in the Baltics and the Central and Eastern European landscape, while developing businesses into market leaders. of the market.

Representingprejudice

AS Repharm represents a group of companies offering healthcare, wholesale and retail of pharmaceutical and healthcare products, laboratory services, operating in the Baltic region and generating annual total revenues of over of 300 million euros. Customers and health are the focus of Repharm’s award-winning brands and operators, including Mēness aptieka pharmacies, Veselības centru apvienība and MediCA group clinics, Centrālā laboratorija laboratories, Recipe Plus wholesaler and Rīgas Farmaceitiskā fabrika, a producer herbal medicines and herbal therapeutic products. officers.

Person authorized to provide additional information:
Deimante Korsakaite
the executive partner of the Baltic Sea Growth Fund INVL
Email: [email protected]

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