Nordic Capital has sold its remaining shares in leading pan-European healthcare provider Capio
May 11 2017
Capio's successful development reinforces Nordic Capital's experience and track record in the healthcare sector
Nordic Capital Fund VI ("Nordic Capital") has sold its remaining shares in Capio AB (publ) ("Capio"). Under Nordic Capital's ownership, Capio developed into a leading European healthcare provider that consistently achieves industry-leading quality standards and high levels of satisfaction among its patients and employees. Capio has proven that well managed, modern medical care can achieve mutually beneficial partnerships with public authorities while also delivering solid financial results.
"Nordic Capital is proud to have supported Capio's exceptional employees and management team in the development of Capio into the European champion of modern medicine, enabling the efficient use of public funds while increasing medical quality," says Fredrik Näslund, Partner, NC Advisory AB, advisor to the Nordic Capital Funds and member of Capio's Board of Directors.
Capio was acquired in a public-to-private transaction in 2006, with the objective of providing the company with active and committed owners to transform Capio into a European leader in modern medicine. During Nordic Capital's ownership period, significant investments were made in Capio's infrastructure, including new hospital buildings and upgraded IT systems, which in turn improved medical standards, quality of service and operational efficiency throughout the organisation. 'The Capio Model' focuses on establishing an empowered and decentralised organisation to systematically drive medical quality improvements as well as a high standard of operational efficiency and quality of service.
The Capio Model has been recognised with various awards including the Swedish Lean Prize in 2011, and was commended byThe Economistmagazine which in 2013 praised the Capio-model at St Göran Hospital in Stockholm as "one of the glories of the Swedish welfare state".
The sharing of best practice between countries and investment in modern facilities, IT and equipment has supported organic growth, on average 4% per annum during 2007-2016, and cemented Capio's position as a reliable partner to the public system across all its markets. The trust shown in Nordic Capital and Capio was demonstrated by Capio winning the contract renewal to run St Göran Hospital in 2012; the largest public hospital contract ever awarded to a private company. Financially, Capio has shown positive organic growth every year since the take-private, including during the global financial crisis.
In addition, Capio has successfully executed on a value accretive acquisition strategy of more than 20 companies, consolidating a fragmented market. Further value was realised by the creation of Europe's leading medical diagnostic chain, Unilabs, following the sale of Capio's diagnostics business to Unilabs in 2008.
Led by a strong management team, Capio was listed on Nasdaq Stockholm in June 2015 - the first welfare company to be listed after the political discussions about private healthcare companies started in Sweden in 2011. With its focus on medical quality, excellent reputation with patients and customers, and solid financial performance, Capio attracted very strong interest from Swedish and international institutions and the general public in Sweden and the offering was substantially over-subscribed. Nordic Capital remained one of the larger shareholders of Capio after the listing, until yesterday's transaction when the remaining shareholding was sold. Following the sale, Nordic Capital no longer holds any shares in Capio.
Fredrik Näslund continues: "Nordic Capital is very proud of the way Capio has managed to simultaneously and measurably live up to the expectations of different stakeholders including patients, employees, medical experts, politicians, payer and owners, proving how a private healthcare company can serve as a valuable partner to the public system. With top quality rankings in all markets, Capio is well placed to continue driving improvements in medical care going forward".
Fredrik Näslund will remain as a board member of Capio after the divestment.
Katarina Janerud, Communication
NC Advisory AB, advisor to the Nordic Capital Funds
Tel: +46 8 440 50 69
About Nordic Capital
Nordic Capital private equity funds have invested in mid-market companies primarily in the Nordic region since 1989. Through committed ownership and by targeting strategic development and operational improvements, Nordic Capital enables value creation in its investments. The Nordic Capital Funds invest in companies in northern Europe and in selected investment opportunities internationally. The most recent fund is Nordic Capital Fund VIII with EUR 3.5 billion in committed capital, principally provided by international institutional investors such as pension funds. The Nordic Capital Funds are based in Jersey, Channel Islands, and are advised by the NC Advisory entities in Sweden, Denmark, Finland, Norway, Germany and the UK.