Bupa, the international healthcare group, today announced its plan to acquire LUX MED Group (‘LUX MED’), the largest private healthcare provider in Poland, for €400m (£325.5m). LUX MED is currently owned by private equity firm Mid Europa Partners.
The deal will mark Bupa’s entry into Poland, one of the most attractive markets in Central and Eastern Europe due to the size of its population, rising levels of disposable income and long-term growth potential. Spending on healthcare is increasing and the private healthcare market is forecast to grow by 10% per annum until 2016.
LUX MED will make Bupa the number one player in Poland’s private healthcare funding and provision markets, adding one million new customers to Bupa’s international portfolio. In healthcare funding, LUX MED is Poland’s market leader in medical subscriptions, a corporate product offering employees rapid access to outpatient services. In provision, LUX MED has a national network of outpatient clinics and diagnostic centres, as well as a day hospital and a large nursing and residential care home in Warsaw.
The acquisition will extend Bupa’s international expertise in integrated healthcare. LUX MED joins up its medical subscriptions service and healthcare provision businesses to deliver end-to-end care for customers. Bupa believes there are significant advantages in integrating healthcare – bringing better oversight of the patient journey to help ensure that quality healthcare is delivered at an affordable cost. In Spain, Bupa already operates an integrated model between its insurance business and hospitals, outpatient clinics and dental centres.
Commenting on the acquisition, Stuart Fletcher, CEO of Bupa, said:
“Today’s transaction marks an exciting step in Bupa’s story. LUX MED will provide us with the number one position in Poland’s growing private healthcare market and an excellent platform for growth as the market develops.
“There is a strong alignment between Bupa and LUX MED, and the combination of our collective expertise in integrating and developing healthcare funding and provision services will fuel growth and innovation in healthcare in Poland.
“We are delighted to work with LUX MED’s management team to deliver high quality, accessible and affordable care to more people in Poland.”
Anna Rulkiewicz will continue to lead the business as Chief Executive Officer of LUX MED, supported by the existing senior management team.
The acquisition is expected to take between two and three months to complete and is subject to the approval of the Office of Competition and Consumer Protection in Poland and Sweden’s Financial Supervisory Authority.*
Notes to Editors
- *The reason that the transaction requires the approval of the Swedish Financial Supervisory Authority is because LUX MED has an insurance company in Sweden that provides health insurance in Poland.
- Photography of LUX MED is available on request.
- Bupa was advised by UBS.
Facts and Figures on LUX MED
- Over 1,000,000 customers. Over 8,000 employees, including around 4,000 doctors of various specialities.
- Over 100 owned health centres in Poland – including out-patient medical centres and on-site company clinics.
- A nationwide network of over 1,500 third party-owned clinics.
- One new hospital and one large residential and nursing care home in Warsaw.
- 11 diagnostic imaging clinics. Poland’s largest mobile diagnostic provider.
- The market leader in the medical subscriptions market – with a one third share of the market.
Facts and Figures on Poland
- Poland has been the best growth performer within the OECD during the global economic crisis. ‘OECD Economic Surveys, Poland’, OECD. March 2012
- The OECD forecasts 2.5% GDP growth for 2012 and 1.6% for 2013 (compared to -0.1% and 0.9% for the UK).
- Unemployment has halved over the last decade – from 20% in December 2002 to less than 10% in December in 2012, according to the Central Statistics Office, Warsaw.
- Disposable income in Poland has doubled between 2000 and 2011, according to Central Statistic Office, Warsaw.
- Total health spending in Poland is 7% of GDP, compared to 9.6% in the UK, and 17.6% in the USA. ‘OECD Health Data 2012: How does Poland compare?’, OECD
- The private healthcare market in Poland is forecast to grow by 10% per annum until 2016. PwC.
Amy Gooden, Head of Media, Corporate Affairs: +44 (0) 20 7656 2239 / +44 (0) 7712 789 539
Steve John, Director of Corporate Affairs: +44 (0) 20 7656 2234 / +44 (0) 7738 919 777
Bupa’s purpose is longer, healthier, happier lives.
As a leading international healthcare group, we offer health insurance and medical subscription products; run care homes, retirement villages, hospitals, primary care and diagnostic centres and dental clinics. We also provide workplace health services, home healthcare, health assessments and long-term condition management services.
We have 29m customers in 190 countries. With no shareholders, we reinvest our profits to provide more and better healthcare and fulfil our purpose.
We employ 79,000 people, principally in the UK, Australia, Spain, Poland, New Zealand and Chile, as well as Saudi Arabia, Hong Kong, India, Thailand, and the USA.
For more information, visit www.bupa.com.