Brazil’s Rede D’Or hospital chain buys 51% of Biocor Hospital, valued at R$750 million
RIO DE JANEIRO, BRAZIL – Rede D’Or (RDOR3) announced on Monday, April 5th, agreed to a binding memorandum of understanding to buy a 51% stake in Biocor Hospital in Belo Horizonte (MG).
Read: Massive consolidation wave looms in Brazil’s private healthcare system
The hospital has a firm value of R$750 (US$131) million, from which net indebtedness will be deducted, said the company in a material fact released to the market after the close of this trading session.
The operation is still subject to the verification of certain usual conditions, among them the approval by Brazil’s antitrust agency, the Administrative Council for Economic Defense (CADE), confirmation of due diligence, and execution of definitive instruments, including the execution of a shareholders’ agreement aiming to establish the rights and obligations of Biocor’s investors.
According to Rede D’Or, the revenue forecast for Biocor is R$300 million, with an EBITDA of R$70 million, in the 12 months following the closing of the transaction, with part of the synergies incorporated.
Source: Exame
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