PureHealth, a prominent healthcare provider in the Middle East, announced on Monday its acquisition of a 60% stake in Hellenic Healthcare Group (HHG) in a transformative $1.38 billion deal. Under the agreement, €115 million will be paid to HHG’s founder, Dimitris Spyridis, while €1.265 billion will go to CVC Capital Partners, the current majority stakeholder.
Headquartered in Abu Dhabi, PureHealth is 43.93% owned by the Abu Dhabi sovereign wealth fund ADQ and boasts a robust network of 114 hospitals, 316 clinics, and 145 diagnostic centers across five countries, supported by 63,000 professionals. The acquisition marks the company’s strategic entry into Greece, leveraging its global expertise and strong financial foundation to enhance the country’s private healthcare landscape.
Hellenic Healthcare Group, the largest private healthcare provider in Greece and Cyprus, operates 10 hospitals and 16 diagnostic centers, with a capacity of over 1,600 beds. Serving more than 1.4 million patients annually and employing over 6,700 healthcare professionals, HHG is poised to benefit from the operational and financial stability this deal brings.
CVC Capital Partners, which currently holds a 90% stake in HHG, will see its ownership reduced to 35%, alleviating some of the regulatory challenges it faced following its acquisition of National Insurance. The deal comes amid growing scrutiny of vertical integration practices, particularly in light of sharp increases in health insurance premiums.
The transaction also has far-reaching implications for Greece’s financial sector. In November 2023, HHG issued a €1 billion secured bond loan, with Eurobank serving as the bondholders’ representative. The proceeds were utilized for debt refinancing, working capital, and new investments. PureHealth’s financial backing, reinforced by ADQ’s credibility, significantly strengthens HHG’s credit profile, effectively transforming its debt into a low-risk asset for Eurobank. This development not only secures smooth loan servicing but also enhances Eurobank’s standing as a key player in large-scale corporate financing.
