GenesisCare spin-off to form biggest cardiology care business

MedTech News: GenesisCare will get a better idea of buyer interest in its CardiologyCo spin-off today, with first-round bids due to land at Record Point, a boutique advisory firm.

Record Point acted as lead advisor to GenesisCare back in 2018 as it undertook a significant equity raising and debt refinancing. The process included securing an equity investment of up to $650 million from KKR, who has 63% ownership stake in the company, in addition to raising a new $875 million European term loan B and $100m revolving credit facility.

CardioCo’s overarching pitch is the increase in cardiovascular disease in Australia and likely demand for cardiology services, being the country’s biggest cardiology care business with stable doctor base, scale and government-backed revenue.

Once indicative bids roll in, GenesisCare will have a firmer idea on the lead contenders and what they are willing to pay.

CardioCo has operations across 80 locations and all states. CardioCo recorded $128 million in revenue in the 2021 financial year, up from $113 million in 2020 and $108 million in 2019, despite recent COVID-19 headwinds.

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