GenesisCare: Leading Australian healthcare provider sets out ambitious expansion plans with new co-investors

Leading Australian healthcare provider sets out ambitious expansion plans with new co-investors

Sydney – GenesisCare Limited, a leading healthcare provider in Australia, is pleased to announce it has entered into agreements for a new investment Consortium to acquire between 50.01 percent and up to 74 percent of the business.

The Consortium comprises Hong Kong-based China Resources Group and Macquarie Capital. Macquarie Capital, the corporate advisory arm of Australian-headquartered financial institution Macquarie Group, is the minority member of the Consortium and China Resources Group’s financial adviser.

The Consortium will invest alongside existing doctor and management shareholders. Global Investment firm KKR & Co, which currently holds 45 percent of GenesisCare will sell its stake in the business to the Consortium.

“This is a strategic partnership designed to use Australian expertise and technology to improve healthcare in new markets, including China, and to do so from an Australian base. A majority of the Board and the management team will remain in place with company headquarters in Sydney,” GenesisCare Chairman, David Vaux said.

“Our day to day clinical independence, clinical management committees and organisational structure will continue as it does today,” the Chairman said.

GenesisCare Managing Director, Dan Collins said the company was continuing expansion plans for Western Europe following its recent entry into the UK and Spain.

“With the strategic capability and positioning of China Resources Group, GenesisCare will accelerate plans for Asia and in particular China. There is a significant appetite for our world class capabilities in cancer and cardiac care. GenesisCare will become part of the solution in how China and developing Asia solves quality and access challenges around essential patient care,” he said.

GenesisCare is Australia’s largest provider of cancer and cardiac services and also the largest provider of private cancer services in Spain and the United Kingdom. The organisation treats more than 2500 patients every day in more than 150 locations across three countries and employs more than 2000 committed medical professionals and management staff.

Ms. Kerry Zhang Deputy General Manager, Strategy Management at China Resources, said: “GenesisCare is an Australian success story. It has developed a world class model for cancer and cardiac care that we will help introduce to China and take around the world. We look forward to backing the GenesisCare leadership team, and supporting its international expansion.”

Cameron Brownjohn of Macquarie Capital said: “We are pleased to be working alongside China Resources in supporting GenesisCare as it pursues its plans to take Australian expertise to international markets.”

GenesisCare Managing Director, Dan Collins paid tribute to KKR whose partnership had fostered the company’s growth.

“For the past four years, KKR has been an active partner in Genesis Care’s domestic growth and international expansion. We are proud of what Genesis Care has accomplished, and are confident this strong foundation will support further opportunities for this rapidly globalizing Australian brand,” Edward Bostock, Director, KKR Australia, said.

GenesisCare and the Consortium said that the catalyst for these discussions came from the recently struck Free Trade Agreement between Australia and China. This transaction underlines the move to a service economy in China, and the export demand for Australian healthcare expertise.

The Board will constitute five existing members - with two independent directors, including the Chairman, two GenesisCare doctors (a cardiologist and oncologist) and the Managing Director. The Consortium will contribute four board members including one from Macquarie Capital.

The existing doctor leadership teams will remain in place. Existing management and doctors are expected to continue to own between 26-50 percent of the company upon transaction completion depending on their shareholder elections

The transaction is subject to a Shareholder vote and Foreign Investment Review Board approval.