Archer Capital Buys Healthe Care For $246M

Australian private equity firm Archer Capital will pay $246 million to buy hospital operator Healthe Care from CHAMP Ventures, Reuters reported Wednesday. Archer outbid rival private equity firm Pacific Equity Partners. Healthe Care which owns 12 private hospitals in Australia.

(Reuters) – Australian private equity firm Archer Capital has agreed to buy private hospital operator Healthe Care from CHAMP Ventures, for A$230 million ($246 million), two sources said on Wednesday.

Archer outbid rival private equity firm Pacific Equity Partners (PEP) on the deal, the sources familiar with the transaction told Reuters, confirming a report in the Australian Financial Review.

Archer paid about A$230 million for Healthe Care which owns 12 private hospitals in Australia, including 1,000 hospital beds and 36 operating theatres.

The sale is the latest in a growing number of secondary buyouts in Australia as private equity firms come under pressure to exit investments in a lacklustre market for initial public offers.

The deal marks the latest purchase for Archer which last month agreed to buy a majority stake in motorsport race group V8 Supercars Australia for more than $300 million.

Archer, with about A$2 billion in funds under management, is one of Australia’s four biggest buyout firms. ($1 = 0.933 Australian Dollars)

(Reporting by Michael Smith and Stephen Aldred; Editing by Ed Davies)