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FINANCIAL AND LEGAL INFORMATION
1
Presentation and history of the Company
Sector
Country
Date
of investment
Residual cost
in €m
Fair value
in €m
% of the portfolio
at fair value
Switzerland
2007
22.5 41.2
4.7
www.unilabs.com1) Business description
Unilabs is a leading pan-European diagnostics company,
providing laboratory and radiology services to public and
private healthcareproviders (hospitals, GPs, occupational health
units), county councils, insurance companies and outpatients,
as well as to the pharmaceutical industry and clinical research
organisations. Unilabs is active in 12 countries (Denmark, Finland,
France, Italy, Norway, Portugal, Spain, Sweden, Switzerland, the
UK, UAE and Peru) with strongmarket positions in Switzerland,
France, Iberia and Scandinavia. The laboratory business
generates over 80%of EBITDA, mainly fromFrance, Switzerland
and Scandinavia, and the medical imaging business generates
the remainder.
2) Why did we invest?
Unilabs offers a unique pan-European footprint with leading
positions in its various markets, which enables the company to
drivesignificanteconomiesofscale(forexample,inprocurement)
and thereby offer lower prices than its competitors. In addition,
Unilabs has pioneered the “hub and spoke” approach to lab
testing in Europe and has greatly innovated to develop its best
practices, which serves to increase the company’s efficiency.
The European laboratory and radiology market is highly
attractive, providing both strong growth in testing volumes and
limited volatility. The market is characterised by its defensive
nature and volume growth is ahead of population growth due
to the introduction of new tests.
3) How do we intend to create value?
External growth is an important source of value creation for
Unilabs. There are significant opportunities for accretive add-on
acquisitions in the fragmented European laboratories market,
which is under reimbursement pressure from government
payers, and where many less efficient operators are struggling
to compete in a decreasing price environment.
Governments across Europe will continue to outsource both
laboratory and radiology provision, from which Unilabs, as a
scale player with significant experience in public tendering, will
be able to benefit.
4) What has been achieved?
Since investment, Unilabs has completed more than 70
acquisitions in Europe. In order to fund these acquisitions, the
company set up a line of credit in 2011 and issued a €685mbond
refinancing in 2013, in conjunction with a new revolving credit
facility to continue to finance add-on acquisitions.
Unilabsmanagement teamhas been significantly strengthened
with recruitments of anewCEO, CCOandCFO. Themanagement
team is now focusing on productivity improvement to offset the
fall in reimbursement rates.
5) How is it performing?
Owing to an increase in volume, in particular in France and
Switzerland, and to the success of its cost-control programme,
Unilabs generated 2016 revenue of €680m(3%organic growth)
and EBITDA of €127m, up 13%.
In September 2016, Apax assisted theCompanywith refinancing
its existing debt to have greater flexibility to finance future
acquisitions.
Taking into account these items, the valuation of the investment
in Unilabs gained €15.3m during the 2016 financial year.
6) How will we crystallise value?
In February 2017, Apax France, Altamir and Nordic Capital sold
their stake in Unilabs to the Apax IX LP fund. This divestment
totalled €41.2m for Altamir, representing a multiple of 1.8 times
the amount invested, and an uplift of 28% compared to the last
valuation.
Subsequent to that transaction, Unilabs announced the
acquisition of Alpha Medical, leader in medical diagnostics
in Slovakia and the Czech Republic, two significant Eastern
European markets.
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REGISTRATION DOCUMENT
1
ALTAMIR 2016