Acquisition of Germany’s leading rehabilitation care provider
9 September 2009
Median was founded by Erich Marx and Axel Steinwarz over 40 years ago and is the largest private rehabilitation care provider in Germany. Headquartered in Berlin, it owns and operates 27 rehabilitation and acute clinics at 19 locations throughout the country, including approximately 6,000 beds and employing around 4,500 staff.
The medical services offered at Median’s clinics are particularly focused on post acute rehabilitation. They include a wide range of areas, such as oncology, neurology, geriatrics, orthopaedics, cardiology and psychotherapy.
The conclusion of the acquisition follows many months of negotiations between Terence Cole and Mark Steinberg and Median’s founders, during which time a strong relationship has been established and the necessary confidence has been given with regards to the high level of services and integrity of the operation being maintained.
A number of professional advisors were appointed to assist in the acquisition, including Rothschild, McKinsey, Lovells, CB Richard Ellis and Ernst & Young, who between them undertook extensive evaluation of the current business and future expansion potential.
Partners Advent International, a Boston based hedge fund, were selected by MARCOL due to their knowledge and experience of the healthcare industry over the past 24 years. They recently acquired Craegmoor Healthcare, the UK’s largest independent provider for specialist care for adults and young people and prior to this they acquired Casa Reha, one of Germany’s largest nursing home operators.
Median is well positioned in terms of its geographic presence and treatment focus. The company’s growth will be supported by demographical factors and by increasing referral rates from acute care to rehabilitation. As the German rehabilitation market is highly fragmented it is believed that, in addition to organic growth, there will be excellent opportunities to explore add-on acquisitions that will further strengthen Median’s leading position in Germany.
The combination of MARCOL and Advent ideally places them both to grow Median’s current 27 clinics and expand upon their established operating procedures to further enhance efficiency and viability.
MARCOL will continue to consider substantial opportunities that are not only property focused, but may include operating companies with property interests and situations where the skills of its international asset management professionals can be utilised.
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