By Robb M. Stewart
MELBOURNE, Australia--Ramsay Health Care Ltd. (RHC.AU) and its
French joint venture partner have agreed to buy a controlling stake
in Generale de Sante SA (GDS.FR), positioning the Australian
company as the largest private-hospital operator in France.
Ramsay and insurer Credit Agricole Assurances will pay EUR16.75
(US$22.68) a share for the slightly more than 83% stake in Generale
de Sante held by Sante SA and Sante Developpement Europe SAS.
Ramsay will pay EUR429 million for 57% of the shares picked up
in the French company--the same percentage it holds in its Ramsay
Sante venture with Credit Agricole, it said in a regulatory filing
Wednesday. The venture partners plan to lift their investment in
Generale de Sante, potentially increasing the amount Ramsay will
pay to a maximum EUR515 million through a tender process.
The deal is Ramsay's fourth acquisition since it bought 57% of
French hospital operator Groupe Proclif in 2010. Generale de Sante
has 75 healthcare facilities, including 61 hospitals, and about
19,000 employees, and will bring Ramsay's portfolio in France to
115 facilities and 15,400 beds.
Ramsay said in mid-May it was in exclusive talks to buy Generale
de Sante. The deal remains subject to approval by regulatory
authorities and is scheduled to close by the end of the year.
The Australian company said it expects the acquisition to offer
an immediate lift to its earnings.
Write to Robb M. Stewart at robb.stewart@wsj.com
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