The Competition Council has deemed the concentration conditions to be appropriately implemented, effectively permitting the merger between private medicine networks InMedica and MediCA Group.
“The investigation process was lengthy, as the Competition Council was especially diligent in assessing the merger’s impact to the competitive environment, analysing separate therapeutical areas and regional markets, all while detailed statistics on commercial medical services were quite limited. In order to execute the transaction, we were obliged to transfer parts of our outpatient secondary care activities in Kaunas and Šiauliai. We are pleased that, having implemented the conditions, the parties can now expect to finalise the transaction in the nearest future.”, said InMedica’s CEO Kęstutis Broniukaitis.
Mr. Broniukaitis also noted that due to unprecedented challenges resulting from the war in Ukraine, the Company is preparing provision of services to rapidly growing refugee flows.
MediCA Group controls MediCA, Kardiolita, Svalbono and Bendrosios Medicinos praktika clinics. MediCA Group is currently owned by Latvian private healthcare group RePharm. InMedica is controlled by one of the largest Baltic private equity funds INVL Baltic Sea Growth Fund, together with minority shareholder Litgaja UAB.
Based on the expected agreement, INVL Baltic Sea Growth Fund (through its subsidiary BSGF Sanus), Litgaja and RePharm would become shareholders of InMedica, while the latter company would own MediCA Group.
With a network of 38 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 23 family medicine centres, 4 broad-profile hub centres, 2 odontology clinics, 3 specialized clinics, 6 walk-in clinics and 3 laboratories.
InMedica group has more than 1000 employees and provides healthcare services to more than 100,000 registered patients. In 2020 the Group generated 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.