Cinven exits major healthcare investment

Private equity firm Cinven has signed an agreement to sell an American healthcare marketing services and health management company from its portfolio.

The firm announced it will exit its investment in MediMedia USA Inc and sell to Vestar Capital Partners. The deal is expected to complete in October.

Cinven acquired MediMedia USA in 2002, together with The Carlyle Group and Apax France, as the core of a broader package of healthcare and business publications activities purchased from Vivendi Universal Publishing.

The move was part of a strategy that focused on a fundamental reorganisation of the business in the package, which led to four successful exits, most recently in the sale of MediMedia’s European and Asian professional healthcare media businesses to United Business Media plc in 2004.

The total enterprise value generated from the four divestments has now generated total returns of 3.2 times the original equity investment of …250m.

“In the past four years under our ownership, a disparate group of businesses has been reorganised into distinct, niche operations led by excellent management who have then implemented strategies for growth,” said Marcus Wood, partner at Cinven.

“Significant value has been generated through revenue and EBITDA growth culminating in successful sales to blue-chip companies.”

© Crimson Business Ltd. 2006


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