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China hospital operator brought by New York-listed fund for $1.4bn

New Frontier acquires United Family Healthcare from Fosun Pharma

New Frontier Corporation is purchasing from alternative investment firm TPG and Fosun Pharma private health operator United Family Healthcare (UFH), for $1.44 billion.

According to a comment, the TPG investment is roughly $1.3 billion.

According to an announcement, the project aims to establish China’s biggest openly quoted embedded healthcare business.

Upon finishing the contract, UFH will be renamed as NFH and is anticipated to be listed on the New York Stock Exchange.

The existing UFH and Fosun Pharma leadership will move over part of the property in UFH and when ending, will jointly own roughly 12% of NFH,’ New Frontier added in a declaration that Fosun Pharma would stay a key, long-term corporate subsidiary of the company purchased.

The Co-Founding and CEO of New Frontier Group, New Frontier Corporation’s patron, Antony Leung, will become Chairman of NFH, and UFH’s founding and CEO Roberta Lipson, will proceed as the CEO of NFH.

New Frontier, listed by NYSE, showed that it would finance the purchase using its $478 million in IPO earnings and extra $711 million in investment obligations from a community of strategic buyers and worldwide property directors, including Vivo Capital and Nan Fung Group. It has also acquired debt obligations of up to $300 million from several lenders.

UFH, established in 1997, runs nine hospitals and 14 clinics in all four towns of level 1 and chosen level 2 in China. It provides facilities including primary health care, community medicine, paediatrics, obstetrics, gynaecology, IVF, orthopaedic operation, oncology and other specialities.

As the procurement completes, UFH will be granted the exclusive right to handle the 64,000 square meter Shenzhen City Hospital’s New Frontier Group flagship, which will anchor UFH’s asset-light management strategy, introduced New Frontier.

“We participated in UFH in the confidence that it was in a powerful situation to meet a significant and increasing need for high-quality private health care in China,” remarked Scott Chen, director of TPG Capital Asia. “In the last five years, UFH has enjoyed huge achievement both clinical and commercially in extending its footprint and extending its client base across China.”

TPG has assisted UFH double the footprint and triple patient capability of its hospitals and hospitals throughout its financing, said Antony Leung, co-founder and president of New Frontier. “For New Frontier healthcare has been a major economic target. Because of our significant working and business knowledge in China, we think that we will be powerful global associates.” Healthcare has been too a significant target area for TPG, especially in Asia. Recently, the $108 billion companies collected almost $14 billion for its flagship worldwide purchase scheme and an enterprise healthcare car after closing the $4.6 billion seventh Asia-focused fund.

Last year, Temasek borrowed $50 million from its health care investment platform Asia Healthcare Holdings, which invests in single specialised healthcare companies in India and South Asia. Nova IVI Fertility has been obtained in India.

The company holds another platform: TE Healthcare and has invested in healthcare organisations, including Parkway Holdings (exiting IHH in Malaysia), Asiri Hospitals, Health Scope and Manipal Health.

TPG is now allegedly searching to purchase Medanta clinics in India together with Manipal Health and Temasek.

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