Australian Ramsay Health Care to buy mental health group Elysium for $ 1 billion

0


December 13 (Reuters) – Australian Ramsay Health Care Ltd (RHC.AX) on Monday announced it would buy Britain’s Elysium Healthcare Ltd for £ 775m ($ 1.03bn) in a bid to expand its presence in mental health services.

The COVID-19 pandemic has put mental health in even greater light, as lockdowns take a toll on people’s well-being. With greater acceptance and less stigma, the demand for mental health services began to exceed supply.

The UK government plans to increase spending on mental health services by £ 2.3bn per year by 2023-2024.

Register now for FREE and unlimited access to reuters.com

Register

“Acquisition of Elysium will expand the journeys of Ramsay’s patients in the UK £ 15bn mental health market at a time when more and more people seek support for mental health, learning disabilities and neurological issues, ”Craig McNally, CEO of Ramsay, said in a statement. declaration.

In addition to adding 72 sites to its portfolio, the deal will allow the Australian hospital operator to further strengthen Elysium’s relationship with state-run national health services.

The acquisition of Elysium, which is owned by private equity firm BC Partners, is expected to add to Ramsay’s earnings for fiscal 2023 in the average number and generate savings of £ 5million a year.

The British company had reported turnover of £ 349million for the 12 months to June of this year. He did not immediately respond to a request for comment.

For Ramsay, the deal came five months after his £ 1.04bn attempt to buy Spire Healthcare (SPI.L) failed after it was blocked by some shareholders of the UK firm.

($ 1 = 0.7555 pounds)

Register now for FREE and unlimited access to reuters.com

Register

Reporting by Arundhati Dutta and Nikhil Kurian Nainan in Bengaluru; Editing by Daniel Wallis, Peter Cooney and Subhranshu Sahu

Our standards: Thomson Reuters Trust Principles.


Share.

About Author

Comments are closed.