Private equity firm buys Australian fertility business

MedTech News: While dealing with a suitor of their own and faced with the prospect of a lengthy court battle with the competition watchdog, the board of in-vitro fertilisation group Virtus Health withdrew Adora Fertility takeover plans in December 2021.

Now a few months on, ASX-listed Healius has entered into a binding agreement to sell Adora Fertility and three Healius Day Hospitals to funds managed by Liverpool Partners for AUD$30.5 million.

The Healius Day Hospitals that are to be sold are Darlinghurst NSW, Greensborough VIC and Craigie Day Hospitals WA.

Healius will retain Brookvale Day Hospital, NSW, which have been integrated into the Montserrat business. Adora is co-located in Westside Private Hospital in Brisbane and will continue to use this facility.

“We are pleased with the outcome of the sale and believe Liverpool Partners are well placed to build on the achievements of Adora, bringing high quality, affordable assisted reproductive technology (ART) to more Australians,” said Healius’ managing director and chief executive officer Malcolm Parmenter.

“The sale of Adora is in line with Healius’ strategy to simplify and realign its portfolio, enabling management to focus on development and growth in our core businesses. We thank Adora’s dedicated team for their commitment and patience during the sale process and wish them every success,” Dr Parmenter concluded.

Completion of the transaction is expected to occur prior to the end of the financial year and remains subject to customary conditions precedent.

Healius provides specialised diagnostic services to consumers and practitioners, while supporting independent healthcare professionals in the delivery of care in its centres, day hospitals and fertility clinics.

Liverpool Partners is a private equity investor building sustainable growth investments in mid-market businesses across Australasia.

Established in 2012, the PE firm partners with founders and management teams in Australian & New Zealand private businesses to help them grow further and create shareholder value.

Its portfolio includes Seisma, a provider of digital transformation services; Orro, an IT services firm that provides cloud and managed services; Zenitas Healthcare, a community-based healthcare provider; and CraigCare, a provider of residential aged care to elderly residents.