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KKR bids for Australia's Ramsay Health Care at nearly $15B valuation

Apr 20, 2022
Illustration of a hospital with a dollar sign

Illustration: Lazaro Gamio/Axios

A KKR-led consortium has offered to buy Ramsay Health Care, the operator of Australia's largest private hospital network confirmed on Wednesday.

Why it matters: With KKR's bid valuing Ramsay at a valuation of approximately A$20.1 billion (nearly $15 billion), the deal would be Australia's largest-ever PE-backed buyout, if successful, per Reuters, which cites Refinitiv.

Details: Australian pension fund HESTA and sovereign fund Abu Dhabi Investment Authority are reportedly part of the consortium.

  • The offer translates to a 33x forward earnings multiple, versus a 17x average, Smartkarma analyst Brian Freitas tells Reuters.

Between the lines: KKR lately has been putting big bucks to work in health care overseas, recently winning the auction for Spanish fertility giant Ivirma in an at least €3 billion ($3.2 billion) deal, following its purchase of Europe's GeneraLife.

  • KKR last year bought the Chinese pharmacy company Quanyi Health.
  • Besides its leading Australia footprint, Ramsay is Europe's second-largest private care provider and also operates in the United Kingdom and Asia.
  • Recent notable domestic bets include its deal for Therapy Brands, which valued the behavioral health software company at $1.25 billion, sources told Axios then.
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