ICG buys New Zealand's Canopy Healthcare
ICG has acquired Canopy Healthcare Group, a New Zealand-based healthcare platform that offers diagnostic imaging, medical oncology, and drug compounding services.
The size of the investment was not disclosed. It came from ICG Asia Pacific Fund IV, which has completed four deals to date. Others include JamesTech, a Korean manufacturer of industrial thermistors, and TF Value Mart, a Malaysian grocery retailer.
Originating in the 1970s, Canopy is a vertically integrated healthcare provider, comprising 19 diagnostic clinics, five oncology clinics, a private breast surgical and diagnostic centre, and a drug compounding business. It claims to be the largest diagnostic player on New Zealand’s North Island and the largest private medical oncology provider nationwide.
Canopy is led by CEO Tony Moffatt, and according to its website, there is a significant level of clinician ownership. The company operates under brands such as TRG Imaging, Auckland Breast Centre, Canopy Cancer Care, and Imix.
TRG was acquired in 2020 from New Zealand-based private equity firm Waterman Capital. Waterman received shares in Canopy, which have now been exited to ICG as part of the latest transaction.
“Canopy is a market-leading healthcare platform providing a critical service with a highly compelling business model," Wooseok Jun, head of Asia Pacific corporate at ICG, said in a statement.
“We were attracted to both the Canopy business and its impressive management team and doctor group. The business stands to benefit from strong organic growth, and we look forward to working with Tony and the exceptional doctor team as we embark on this new partnership.”
The firm’s previous healthcare investments in Australia and New Zealand include Cura Day Hospitals and Everlight Radiology. The former was sold to Germany’s Fresenius Medical Care in 2017 and the latter went to Livingbridge last year.
For its fourth fund, ICG consolidated its two key Asian strategies – mid-market sponsorless transactions and traditional mezzanine deals – under a single vehicle. Canopy falls into the sponsorless category, known internally as corporate transactions. ICG offers flexible financing solutions, often to companies that don’t regard raising equity as an attractive option.
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