Australian healthcare provider Ramsay Healthcare has followed up its failed attempt to acquire UK provider Spire Healthcare with an agreement to acquire UK mental healthcare provider Elysium Healthcare for A$1.4bn (£775m).
While over the summer shareholders blocked Ramsay’s proposed £1.4bn takeover of Spire, the provider announced to the Australian stock exchange that it will buy Elysium from private equity firm BC Partners.
Ramsay said the acquisition would afford it the opportunity to enter the UK mental health hospital market at scale and expand its services in the UK.
The deal, which is expected to deliver savings of at least £5m per year, is expected to close during the first quarter of next year when Elysium is expected to act as a complementary business to Ramsay’s existing UK hospital operations.
The purchase will be funded through Ramsay’s existing debt facilities.
In a statement, Elysium said that while its executive leadership team and day-to-day operations will not change under its new owner, the deal does mean it can continue to expand and develop services for the long-term future.
Craig McNally, managing director and CEO at Ramsay Health Care, said: “This is an excellent opportunity for Ramsay to expand it successful healthcare services platform in the UK through the acquisition of an established and reputable business, with a strong track record of growth and a robust pipeline of development opportunities.
“It will build on the Ramsay brand and quality reputation with doctors, payors and patients in the UK market.
“The acquisition of Elysium will expand Ramsay’s patient pathways into the £15bn UK mental health market at a time when more and more people are seeking support for mental health, learning difficulties and neurological issues.”
He added the deal would provide opportunities to leverage Elysium and Ramsay’s existing mental health facilities and clinicians in Australia, France and Sweden.