Hony Capital acquires Shanghai Yangsi Hospital
Hony Capital has acquired Shanghai Yangsi Hospital, the largest privately-owned hospital in Shanghai. The deal size was not disclosed but it is said to amount to hundreds of millions of renminbi.
The investment was made through Hong He Healthcare, a healthcare-focused investment subsidiary set up by the private equity firm. Xiaopeng Zhang, formerly vice principal of Beijing University's Cancer Hospital, serves as CEO of Hong He Healthcare.
Earlier this year, Hony CEO John Zhao said the firm is seeing consolidation opportunities in the healthcare sector. "Healthcare is one of segment to combine incremental and consolidation. We're looking at investing in hospitals, leveraging our skills to improve management and introducing industry best practices to provide high levels of care," he noted.
The State Council announced in June that it would relax limits on foreign investment in joint-venture hospitals as part of efforts to deepen healthcare reform. There are also plans to increase the number of medical service providers from Hong Kong, Macau and Taiwan able to set up private hospitals in China, and allow other qualified foreign investors to open wholly-owned medical centers in areas such as the Shanghai Free Trade Zone.
Yangsi Hospital was founded in 2004 and is located in Shanghai's Pudong district. It has 420 beds, providing general services to 3,500 patients every day.
Hony's healthcare portfolio includes Chinese generic drug makers CSPC Pharmaceutical Group and Consun Pharmaceutical Group. Two months ago, the PE firm made the latest of several partial exits from CSPC, selling an 11% stake in the Hong Kong-listed firm for HK$4.01 billion ($528 million).
In addition, last year Hony completed a privatization of Simcere Pharmaceutical Group, which valued the US-listed company at approximately $490 million.
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