Daily Management Review

Vivalto Sante Offers ‘455 Million Euros’ For Capio’s French Business


The deal would strengthen Capio’s position as a leader to “drive growth and shareholder value”.

Capio is a healthcare company of Sweden which has plans of selling its “French business” to Vivalto Sante. The deal is said to have struck a worth up to “455 million euros”. This step is an attempt for the company to turn its focus “on its less capital intensive Nordic operations”.
Capio’s operations are seen across “Sweden, Norway, Denmark, France and Germany” which generated a net sale of “15.3 billion crowns” last year. Moreover, in the month of June 2018, the company had reported that it was carrying out talks for possibly divesting on its “non-Nordic operations”. According to the statement of Capio:
“The proposed transaction would accelerate the positioning towards the less capital intensive Nordic operations and build on Capio’s leadership positions to further drive growth and shareholder value”.
The deal that has been proposed, if considered, would provide an “upfront enterprise value of 425 million euros” with an additional “earn-out contingent on this year’s financial performance”, the total “enterprise value” would reach “455 million”. However, Reuters added that:
“The deal is subject to due diligence of Capio France by Vivalto, the approval of regulatory authorities and the approval of Capio’s shareholders at an extraordinary general meeting, it (Capio) said”.
While, the company statement informed:
“It is anticipated that proceeds from a sale would be used partly to pay down Capio Group debt and partly as a return of cash to shareholders”.
In fact, in the month of July 2018, the board of Capio refused to carry out a proposed takeover of “661 million euro” which came from the Ramsay Health Care, the “French subsidiary of Australian hospital group”. The reason furnished for the denial is that Capio found the offer undermining the value of the business.

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