Medi-Clinic, South Africa's third largest hospital group, announced Thursday that it is buying Switzerland's biggest private hospital business, Hirslanden, from private equity house BC Partners for CHF2.846bn (US$2.4bn).
It gives Hirslanden a CHF3.6bn enterprise value.
Barclays Capital is underwriting part of the deal with up to CHF2.8bn in debt financing.
South Africa's Standard Bank and Liberty Group, represented by Stanlib Asset Management, are providing Medi-Clinic with CHF1.075bn worth of equity financing.
Medi-Clinic's board also wants to carry out a rights issue of up to ZAR4.5bn (US$635m) to pay down part of the acquisition funding subject to shareholder approval on September 7.
Dresdner Kleinwort, Standard Bank and Citigroup Global Markets advised Medi-Clinic, while Rothschild and UBS advised BC Partners.