Finnish healthcare provider Mehiläinen purchases Romanian healthcare network Regina Maria from MidEuropa
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Private Equity Giant Mehiläinen Expands into Eastern Europe
Catch the latest scoop as Finnish healthcare leader Mehiläinen takes a giant leap into Romania and Serbia with the acquisition of Regina Maria Group and MediGroup!
Mehiläinen, boasting a rich history of over 115 years in the medical field and operations in numerous European countries, is set to capture the healthcare landscape in Romania and Serbia with a breathtaking takeover of Regina Maria and MediGroup. This acquisition, deemed as the "largest healthcare services transaction in Central Europe," is subject to customary regulatory approvals and is slated to close later this year.
This game-changing deal will see Mehiläinen acquiring 100% of the shares of both Regina Maria and MediGroup. The transaction, as stated by the companies, underscores the vivid future of the healthcare market in Romania and the region, marking a new chapter in Regina Maria's evolution, particularly during its 30th anniversary year.
Fady Chreih, the driving force behind Regina Maria Health Network as its CEO and chairman of the Board of Directors of MediGroup Serbia, will continue to lead the companies under Mehiläinen's ownership. There will be no changes in the names or day-to-day operations of the health networks, the companies assured.
Regina Maria, with over 11,000 employees and a presence in every Romanian county, sports a substantial portfolio boasting nearly 1 million subscriptions and approximately 13,000 corporate partners. Its sister company, MediGroup, claims over 100 units and more than 2,500 employees. The combined revenue of the two companies surpassed EUR 550 million in 2024.
Mehiläinen, present in five countries across Europe, currently operates over 890 clinics and medical facilities, sustained by a workforce of over 37,000 healthcare professionals. Last year alone, the group served over 2.2 million clients, generating a whopping EUR 2,063.5 million in revenue, representing an impressive 11.5% increase compared to the previous year. Its notable shareholders include CVC Capital Partners, Varma, the State Pension Fund of Finland, Ilmarinen, the Pharmacy Pension Fund, and Valion Eläkekassa Pension Fund.
Jan Järvenpää, the illustrious CEO of Mehiläinen Group, expressed his enthusiasm about the acquisition, stating, "Regina Maria is one of the fastest-growing and highest-quality healthcare service providers in Europe. We've been keenly observing the company's development, and we're absolutely thrilled with this acquisition opportunity. Regina Maria's sister company, MediGroup, is also a top-tier player in its market with exceptional quality. I'm positively looking forward to the collaboration with Fady and his exceptional management team!"
Fady Chreih, CEO of Regina Maria, praised the partnership with Mehiläinen, saying, "We're honored that the largest healthcare provider in Finland, with a rich history in the medical field, recognizes the potential of the medical market in Romania and Serbia. This investment reflects Mehiläinen Group's unwavering faith in the region's economic growth, serving as a significant beacon of stability amidst the current financial climate. [...] We're fully confident that, together with Mehiläinen, we'll continue to strengthen and advance our services in both Romania and Serbia. Together, we're forging a path toward an increasingly digitized, accessible, and high-quality healthcare future, where patient safety and the quality of care remain paramount."
Previously, the private equity investor Mid Europa owned Regina Maria (Centrul Medical Unirea), which it acquired in 2015. The fund has announced its intention to continue investing in Romania, alongside local entrepreneurs. In 2023, Mid Europa sold local retailer Profi to Ahold Delhaize in a monumental EUR 1.3 billion exit. The fund also has interests in the local delivery services company Cargus under its belt.
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- As Mehiläinen expands its business interests into Eastern Europe, it's worth considering potential investment opportunities in related sectors, such as healthcare finance or real-estate developments for medical facilities in Romania and Serbia.
- With Mehiläinen's significant investments in the healthcare sector, it's possible to see increased need for financing options, especially for small businesses seeking to enter the real-estate market and open their own medical facilities in alignment with the growing demand for healthcare services.
