EQT acquires Meine Radiologie from Triton and blikk from DBAG
Frankfurt am Main — Triton sells Meine Radiologie to EQT Infrastructure — with a remarkable balance sheet. Deutsche Beteiligungs AG (DBAG) successfully completes its investment in the radiology group blikk with the sale to EQT. EQT intends to merge the two companies into an even larger radiology chain.
Successful exit at Triton: The private equity investor sells the radiology chain Meine Radiologie Holding to EQT Infrastructure. They are also acquiring the Blikk radiology group from DBAG, which also expects high proceeds from the sale.
Triton was advised on the transaction by Rothschild, White & Case, Gibson Dunn, EY and L.E.K. Consulting. According to an insider, the leverage is up to 6.5x Ebitda.
Triton had acquired Meine Radiologie, which at the time still operated under the name “Deutsche Radiologie Holding”, directly from the then owner Tempus Capital in January 2019 as part of an “off-market dialogue” that started back at the end of 2018. The financial investor made the investment from its first smaller-midcap fund; in the meantime, Triton is already investing from its second midmarket fund.
The parties have agreed not to disclose the purchase price or further details of the contract. DBAG and DBAG Fund VII continue to see good development opportunities for blikk and are therefore investing a significant portion of the return flow in a re-investment of up to 15 percent; DBAG accounts for up to three percentage points of this. The transaction is expected to close in the current quarter, subject to customary regulatory approvals.
With the transaction, DBAG realizes proceeds from the sale that are significantly higher than the valuation of the investment in DBAG’s most recent IFRS interim financial statements (March 31, 2021). The additional, unplanned value added amounts to around 26 million euros. The net asset value of the private equity investments and the Group’s net income increase by this amount.
This value contribution was not included in the forecast for the net asset value of the private equity investments as of September 30, 2021 and the Group’s earnings for fiscal 2020/2021, which was last confirmed on May 12, 2021. DBAG had most recently expected the net asset value of the private equity investment to be between 450 and 505 million euros (before net inflows from the capital increase) as of September 30, 2021, and consolidated net income for fiscal 2020/2021 to be between 70 and 80 million euros. DBAG is currently preparing its quarterly statement as of June 30, 2021. This will take into account the unplanned value contribution from the transaction. The two above-mentioned ratios may be influenced by further positive or negative effects from the valuation of the remaining portfolio companies as of the reporting date of June 30, 2021 and by other findings in the course of preparing the financial statements.
First sale of the DBAG Fund VII portfolio
The sale of the investment in the blikk Group is the first sale of a management buy-out (MBO) from the DBAG Fund VII portfolio. The fund had structured ten MBOs between 2017 and 2021; the fund’s investment period has not yet ended. With DBAG Fund VII, DBAG implemented the concept of a so-called top-up fund for the first time: It makes it possible to invest up to 200 million euros of equity in individual transactions, more than twice the amount otherwise targeted. 105.7 million was invested in the blikk Group, also using the top-up fund. 18.7 million of this amount is attributable to DBAG, which so far holds a calculated share of around eleven percent in blikk. The radiology group’s MBO was agreed in March 2017, but due to a complex approval process, it did not take effect until May 2019.
The radiology group blikk (www.blikk.de) combines numerous radiological and nuclear medicine care centers (MVZ) with nearly 30 locations as well as a hospital. Regional focal points exist in North Rhine-Westphalia (Bochum/Herne/Unna) and in Berlin. Approximately 150 physicians provide care to about one million patients annually in the practices. The entire range of radiological and nuclear medicine services is offered, from conventional X‑rays, mammography, ultrasound, fluoroscopy, angiography and computed tomography to interventional radiology and magnetic resonance imaging (MRI). In addition to daily routine radiology, the blikk group provides medical specialists and experts for all areas (e.g. neuroradiology, cardiac imaging, oncological radiology, rheumatological radiology, pediatric radiology, prostate imaging) for difficult and rare questions as well as for special patient needs due to its size and experience, in addition to the appropriate equipment technology.
One of the leading providers of radiological services in Germany
In the past four years, the Group has grown by adding further MVZs and sites; further acquisitions are planned. Group sales for the current year are expected to be around 103 million euros, some 50 million euros more than at the start of the investment. Since then, intensive efforts have gone into improving services for patients.
“It has been shown that with the funds of a financial investor, the services for patients in this capital-intensive medicine can be significantly improved,” said Tom Alzin, member of the DBAG Management Board on the occasion of the signing of the agreement: “We want to participate in the further growth of the group through our return participation alongside the new investor.”
“DBAG has been a great partner to us,” expressed Thilo-Andreas Wittkämper, MD, Managing Partner of the blikk Group. And: “Now we will receive additional capital for the development of the Group and can further improve the medical offering and patient care.
Deutsche Beteiligungs AG, a listed company, initiates closed-end private equity funds and invests — predominantly alongside DBAG funds — in well-positioned medium-sized companies with potential. One focus for many years has been industry. An increasing proportion of equity investments are in companies in the growth sectors of broadband telecommunications, IT services/software and healthcare. The long-term, value-enhancing entrepreneurial investment approach makes DBAG a sought-after investment partner in the German-speaking region. Assets managed or advised by the DBAG Group amount to €2.5 billion.