Sino-Australian consortium to buy Icon Group from Quadrant

They will pay around A$1 billion ($746 million) for Icon, according to a source familiar with the situation, and support a regional expansion plan that has already seen the company establish a presence in Singapore, China and New Zealand.

Icon is Australia’s fastest-growing cancer care provider, running a network of facilities that offer day oncology and hematology services, radiation oncology treatment, chemotherapy compounding, and pharmaceutical supply services. Quadrant acquired a majority stake in the company in 2014. Yorkway Partners introduced the opportunity to Quadrant and invested A$40 million itself in the business.

At the time, Icon had four cancer day centers in Queensland and one in Adelaide. Quadrant’s plan was to turn the company from a purely medical oncology provider into a platform for integrated platform offering a range of cancer care services. This was done through a combination of organic growth and acquisitions, as well as partnerships with leading Australian and global hospital operators.

It also took the company into Singapore, which is intended to serve as a base for regional operations. A joint venture was also agreed with Guizhou Yibai Pharmaceutical, resulting in five centers established or under development in mainland China. There are plans to introduce an additional 50 facilities.

“While cancer rates are increasing, many people lack access to top-quality cancer care. Survival rates and quality of life improve greatly when the best possible care is available,” said Marcus Simpson, head of global private capital at QIC, in a statement. “Icon has made enormous headway meeting growing demand for world-class oncology services. Icon is positioned to expand throughout the Asia-Pacific region and make a real difference.”

This is not the first time QIC has entered into an investment with this objective: last year it bought a majority stake in cattle station operator North Australian Pastoral with a view to expanding the company’s supply chains into Asia, leveraging rising demand in the region for premium beef.

James Ieong previously led QIC’s investments in China before departing to establish Pagoda, which specializes in growth capital and buyouts across the country’s technology, media and telecom, healthcare, education and consumer sectors. The firm’s backers include QIC and some European pension funds.

Several other Australian healthcare assets have been acquired by owners keen to pursue expansion in China. In 2015, Archer Capital sold hospital operator Healthe Care to China’s Luye Medical Group, while last year KKR agreed to sell GenesisCare, a cancer care and cardiac services provider, to China Resources Group and Macquarie Capital.

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• Topics
• Australasia
• Greater China
• Buyouts
• Trade sale
• Healthcare
• Australia
• China
• QIC
• Goldman Sachs
• Quadrant Private Equity