Canada Pension Plan Investment Board (CPPIB) has invested US$325 million in 21st Century Oncology Holdings Inc, a U.S.-based operator of a global network of cancer treatment centres and affiliated physician practices. The deal, which will be done through a series of convertible preferred shares, entitles CPPIB to nominate two directors to the company’s board of directors. 21st Century Oncology, a majority-owned portfolio company of U.S. private equity firm Vestar Capital Partners since 2008, said the new investment will result in substantial de-leveraging, stronger liquidity and significant capital for continued business expansion.
Canada Pension Plan Investment Board Invests US$325 Million in 21st Century Oncology Holdings, Inc.
Toronto, ON, Canada (September 26, 2014): Canada Pension Plan Investment Board (CPPIB) announced today that it has invested US$325 million in 21st Century Oncology Holdings, Inc. (“21st Century Oncology”) through a series of convertible preferred shares. CPPIB will have the right to nominate two directors for appointment to 21st Century Oncology’s Board of Directors.
Founded in 1983, 21st Century Oncology is the operator of the largest integrated network of cancer treatment centres and affiliated physician practices in the world. The company offers a comprehensive range of cancer treatment services, including radiation therapy, and is focused on delivering high-quality, cost-effective patient care in personal and convenient settings. As the leader in most of its domestic and international markets, 21st Century Oncology operates 179 treatment centres, including 144 centres located in 16 U.S. states and 35 centres in six countries in Latin America.
“We are pleased to become a significant investor in 21st Century Oncology and look forward to a partnership with the company’s experienced management team, led by Dr. Daniel Dosoretz, and majority owner Vestar Capital Partners,” said Scott Lawrence, Managing Director, Head of Relationship Investments, CPPIB. “21st Century Oncology is a recognized leader in radiation oncology services in its home markets and has a strong reputation for clinical excellence.”
“This investment fits well with Relationship Investments’ strategy to provide strategic, long-term capital to industry leading companies where CPPIB can participate in the future success of the business and help create greater value through an ongoing partnership,” said Mr. Lawrence.
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2014, the CPP Fund totalled $226.8 billion. For more information about CPPIB, please visit www.cppib.com.
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