Sydney private equity firm Liverpool Partners is to acquire Adora Fertility from day-hospitals and pathology business Healius (ASX: HLS) for $30.5 million.
The price is 32% lower than Healius accepted from a trade buyer last year before the Australian Competition and Consumer Commission (ACCC) intervened.
Healius announced on 25 March that it had entered into a binding agreement to sell Adora and three of its day hospitals used by the business. The sale will be on a cash and debt-free basis.
The day hospitals included in the deal are in Darlinghurst, Sydney; Greensborough, Victoria; and Craigie (Craigie Day Hospital), Perth. Adora will continue to share facilities with Healius at the Westside Private Hospital in Brisbane.
Listed fertility business Virtus Health (ASX: VRT) announced in August that it was to acquire the Adora business and three day-hospitals from Healius for $45 million.
The Australian Competition and Consumer Commission (ACCC) intervened saying the acquisition was likely to reduce competition in the fertility services sector.
Section 50 of the Competition and Consumer Act prohibits mergers or acquisitions that will have the effect, or be likely to have the effect, of substantially lessening competition in any market.
Despite the ACCC launching a review, Healius and Virtus pushed ahead with the deal. The ACCC then sought and gained an injunction from the Federal Court to stop the deal being completed. Virtus abandoned the acquisition in mid-December.
As Primary Healthcare, Helius launched Adora – initially called Primary IVF – in 2014. The new player offered greatly reduced costs to most IVF providers as it offered services mostly bulk-billed through Medicare.
Virtus is close to being acquired by UK private equity firm CapVest which dropped in on an offer Mebourne buyout firm BGH Capital made late last year.
Liverpool Partners already has healthcare investments.
The firm’s sustainable investment fund Inspire Impact recently invested in Australia’s largest consumer healthcare software platform Healthengine. Liverpool Partners is also an investor, alongside Adamantem Capital, in Zenitas Healthcare which provides services to enable elderly people to remain living in their own homes.