Two further acquisitions for BUPA

Two further acquisitions for BUPA

 

5 June 2002

 

BUPA, the UK's leading health and care business todayannounced acquisitions in two of its core businesses.

 

It is buying the private health insurer AXA HealthAustralia, based in Melbourne, for A$595 (227 million) in a consortium withAustralia's Macquarie Bank. The deal is subject to due diligence and will becompleted by August.

 

In a separate deal in the UK where the group has 70percent of its assets, it has bought 13 care homes from Ashbourne KW Ltd, anoperating subsidiary of Ashbourne Consolidated Group Ltd for 59 million.

 

In its Australian acquisition, BUPA will initially have a50 percent stake in the consortium acquiring AXA Health Australia. MacquarieBank will seek to sell down some of its equity to institutional investors. BUPAwill manage the AXA business on behalf of the consortium. AXA Health isAustralia's third largest PMI provider and made a profit of 48.5 million forthe 15 month period to December 2001 on revenues of 400 million.

 

Forty-five percent of the Australian population has privatehealth insurance. AXA Health has 11 percent of the market, concentrated inSouth Australia and Victoria.

 

BUPA's Chief Executive Val Gooding said: "Theacquisition in Australia extends our overseas portfolio and in particular ourbusiness interests in the Asia Pacific region, which we have previouslyidentified as an area of potential growth. We are a predominantly UK-basedbusiness but we will continue to look at home and overseas for opportunities toinvest.

"AXA is a profitable, established player operating ina genuine mixed economy in healthcare where public and private funding bothhave a part to play in the delivery of healthcare to patients."

 

There are 44 PMI companies in Australia, the majoritybeing mutual, not-for-profit businesses. This will be complemented by BUPA'sown provident structure, where all surpluses are reinvested back intohealthcare.

 

BUPA's most recent acquisition in Asia was in July lastyear when it bought Vista Healthcare which specialises in primary care, daycasesurgery, acute surgical services and diagnostics. It has activities inSingapore, Hong Kong, China, Malaysia and a hospital in Australia.

BUPA has existing overseas insurance businesses in HongKong and Thailand, as well as Spain, Ireland, Malta and Saudi Arabia.

 

The Ashbourne acquisition further demonstrates BUPA'scommitment to the care home sector and consolidates its position as theindustry's leader with 17,738 beds in 248 homes. Ms Gooding said: "BUPA'sacquisition of 13 largely purpose-built nursing homes which are well positionedin their local markets extends the geographical coverage of our existing carehomes. As well as being excellent homes that complement our current provision,they further expand the range of care we offer to the public."