
EQT buys Australia cancer care business from PE consortium

Goldman Sachs Asset Management, QIC, and Pagoda Investment – a China-focused GP set up by a former QIC executive – have agreed to sell Australia cancer care provider Icon Group to EQT for a reported valuation of A$2.3 billion ($1.67 billion).
EQT will acquire a 70% interest in the business, while Goldman will retain 17% and company management and doctors will re-invest alongside EQT, taking 13%. The Australian Financial Review added that the transaction, which values Icon at 16.5x earnings for the 12 months ended June, will be supported by about A$1 billion in term loan B financing.
Goldman, QIC, and Pagoda bought Icon in 2017 from Quadrant Private Equity, with a view to furthering an existing regional expansion drive. Quadrant grew the business from four cancer day centers in Queensland and one in Adelaide into a multinational with 36 sites across Singapore, China, and New Zealand, as well as Australia.
It remains Australia’s largest vertically integrated cancer care operator, offering radiation oncology, medical oncology, compounding, and pharmacy services. There are 31 clinics in Australia and New Zealand that deliver more than 260,000 treatments per year, plus 14 facilities in Singapore and Greater China, including a presence in Hong Kong, according to a statement.
In addition, Icon operates Australia’s largest private cancer clinical trials program, produces more than one million cancer drug infusions per year through its compounding business, and runs a network of 51 hospital pharmacies.
“In our four years as majority investor, the strength of the Icon Group model has been proven and there is potential for further growth in the years to come. Remaining as a shareholder, we will leverage our global network, capital, and industry expertise to continue to support Icon’s management and doctors,” said Stephanie Hui, co-head of Asia alternatives investing at Goldman.
EQT is investing through its fifth global infrastructure fund, which closed earlier this month with EUR15.7 billion ($17.7 billion) in commitments. Icon represents the firm’s fourth deal in the radiology and radiotherapy space, after Australia’s I-Med and Germany’s Blikk and Meine Radiologie Holding.
“Icon Group is revolutionizing the way cancer care is delivered through an integrated model that enables access for all patients through the decentralization of care in major cities and bringing cancer care services to the patient in one location,” said Ken Wong, a partner and head of EQT’s Asia Pacific infrastructure advisory team.
“This best practice cancer care model is well validated in Australia and Southeast Asia, and EQT’s investment will enable this next phase of growth around the world.”
EQT was advised by Morgan Stanley, Herbert Smith Freehills, Deloitte, and PwC.
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