In pursuance of private medical networks InMedica and MediCA Group joining forces, InMedica is announcing the transfer of its business. In compliance with the concentration conditions set by the Competition Council that are obligatory for the implementation of the merger of the two networks, part of the secondary level outpatient activities in Kaunas and Šiauliai were transferred to Affidea Lietuva UAB. According to the representatives of InMedica, the transferred activities accounted for about 1% of the company’s annual turnover.
Last November, the Competition Council issued conditional concentration approval for the merger of the medical clinic network InMedica with the MediCA Group, obliging the merging parties to transfer part of their activities to other existing market players.
“Although the transferred activities make up less than 1% of the company’s annual turnover, selling a long-established and nurtured business on a solid path to its growth is not easy. However, I am confident that the business is being transferred to really good hands – Affidea Lietuva is one of the largest and strongest players in the Lithuanian private medical market, thus we are certain that the buyer will continue to effectively develop the acquired activities, take care of employees and provide the highest quality services to patients,” Mr. Kęstutis Broniukaitis, CEO of InMedica, comments on the changes.
According to the InMedica’s CEO, this transaction was unavoidable in order to implement the merger with the MediCA Group: “For us, this is the beginning of major changes. This step opens up an opportunity to start implementing a qualitative transformation of both healthcare networks, which will ensure the possibility to take even better care of patients throughout Lithuania”.
Affidea Lietuva UAB acquired a part of the secondary level outpatient cardiology, rheumatology, and pulmonology activities in Kaunas, as well as cardiology and urology activities in Šiauliai.
According to Mr. Vitalijus Orlovas, Director of Affidea Lietuva UAB, “The decision to acquire additional outpatient activities in two cities of the country is in line with our business development strategy. We plan to further effectively develop the acquired services, ensuring the highest quality and accessibility for a larger number of patients”.
Following the merger of the private medical networks InMedica and the MediCA Group, the joint healthcare institution will operate in 20 cities in Lithuania, serving more than 200 000 patients. Patients will be provided with all three levels of services – from consultations with family doctors to complex heart surgeries in specialized Kardiolita clinics.
The MediCA Group is currently managed by the Latvian private medical group RePharm. Meanwhile, InMedica is managed by one of the largest private equity funds in the Baltics, INVL Baltic Sea Growth Fund.
With a network of 37 clinics in several cities, InMedica is one of the largest private medicine centres in Lithuania. InMedica provides diagnostic, outpatient, surgery, dentistry and other medical services. InMedica group consists of 22 family medicine centres, 4 broad-profile hub clinics, 1 specialized cardiology clinic, 6 walk-in clinics, 3 laboratories and 1 plastic surgery clinic.
InMedica group has more than 1000 employees and provides healthcare services to more than 100,000 registered patients. In 2020 the Group received revenue of EUR 18.0 million. Since February 2019, 70% of the shares of InMedica are owned by INVL Baltic Sea Growth Fund, one of the largest private equity investment funds in the Baltic States, through its subsidiary BSGF Sanus.
About INVL Baltic Sea Growth Fund
The INVL Baltic Sea Growth Fund, with a size of EUR 165 million, is one of the largest private equity funds in the Baltics and has the European Investment Fund (EIF) as its anchor investor. The EIF, which is a part of the European Investment Bank, has committed EUR 30 million with the support of the European Fund for Strategic Investments (a key element of the Investment Plan for Europe, or ‘Junker Plan’) while also allocating resources from the Baltic Innovation Fund, a “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia. The initiative aims to increase capital investment in high-growth-potential small and medium-sized enterprises in the Baltics.
The fund seeks to assemble a diversified portfolio, targeting majority or significant minority stakes through investments of EUR 10 million to EUR 30 million in companies that demonstrate high growth potential and an ability to succeed in conditions of increasing global competition. The fund is focused on the Baltic countries and neighbouring regions including Poland, the Nordics and Central Europe. The fund so far has invested in five companies in the healthcare, civil engineering, environmental management (plastic recycling and waste management) and cosmetic and hygiene products manufacturing sectors.
The fund is managed by one of Lithuania’s leading asset management companies, INVL Asset Management, which is part of the Invalda INVL group. The group’s companies manage pension and mutual funds, individual portfolios and private equity and other alternative investments. More than 250,000 clients in Lithuania and Latvia and international investors have entrusted the group with over EUR 1.5 billion of assets under management. Active since 1991, Invalda INVL has a solid 30-year track record of managing private equity and developing companies into market leaders in the Baltics and CEE.