Investment funds target medical companies

GED Capital, one of the top private equity fund managers on the local market, is currently in the process of acquiring the Diamedix lab equipment distributor, in a deal worth some €15 million, according to sources close to the transaction for Business Standard.

The deal, which includes the takeover of controlling interest for some €8-9 million, with a further €5 million capital injection, is currently being analyzed by the Competition Council.

According to market sources, GED would be acquiring 78.93 percent, and former shareholders will remain involved in the business.

Besides GED Capital, other investment funds were recently involved in talks relating to the acquisition of health companies. Advent and Nycomed funds were interested in the purchase of the Ozone sales & marketing company, according to sources on the mergers&acquisitions market.

"The medical services industry is less affected by recession. At a time when the government is facing so many problems in the public health system, the significance of the private medical sector is rising," GED Capital Managing Director for Eastern Europe, Robert Luke, told Business Standard.

Contacted by Business Standard, Diamedix Economic Manager, Traian Marinescu, did not confirm the deal. Luke declined to comment on the Diamedix deal, citing confidentiality issues. However, he did tell Business Standard that the fund's interest in the medical sector is not limited to Diamedix. GED Capital was previously involved in the health industry, as shareholder in local Sicomed pharmaceutical producer. GED Capital, along with the Global Finance investment fund, exited the company in 2005, when they sold controlling interest to Czech Zentiva producer.

Mediafax