Healthcare divestment generates 3.6x cash-on-cash return multiple for Arx

Central Europe-focused private equity firm, ARX Equity Partners, completed today the sale of its investment in Slovenian healthcare services provider, Diagnosticni Center Bled doo (“DCB”). The divestment has generated an overall 3.6x cash-on-cash return multiple and an IRR exceeding 25%.

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Brian Wardrop, Managing Partner at ARX

DCB has been acquired by a joint venture involving Sava Re and Triglav, two of Slovenia’s largest insurance companies. The takeover of DC Bled will enable Sava Re and Triglav to implement their strategic expansion into the Slovenian private health services market.

Bled-based DCB is the largest private healthcare service provider in Slovenia. The Company provides comprehensive outpatient and inpatient medical services across six locations. DCB performs more than 20,000 specialist examinations per annum, primarily in the areas of gastroenterology, urology and MRI.

Prague-based ARX acquired DCB in 2015 to consolidate and grow its market position in the Slovenian diagnostics sector. During ARX’s ownership, four strategic add-on acquisitions were completed and the company doubled in size.

ARX classifies Slovenia as one of its core Central European focus markets. ARX’s track-record for the geography includes several, successful Slovenian investments that have led to three profitable exits over the past decade. 

Brian Wardrop, Managing Partner at ARX, said, “We are delighted that DC Bled has been acquired by a blue-chip strategic investor, one that will continue to support the Company in its objective to provide the highest quality medical services to the Slovenian market.

Wardrop also holds portfolio responsibility for TMX Mobile Solution, a Hungary-based buy-out completed in 2018. The mobile phone after-sales service company provides phone repairs, localization, software installation, and logistics services for OEM warranty clients and insurance providers in domestic and international markets.

In August 2019 Sava Re d.d. reported that as buyer and Cinxro Holdings Ltd. (which is an affiliate of ARX CEE III LP) entered into a contract under which Sava Re d.d. to acquire 80 percent of the share capital of the Slovenian company Diagnostični center Bled d.o.o. (“DC Bled”), representing 100 percent of voting rights.

The takeover of DC Bled represents an important step for the Sava Insurance Group towards implementing its strategy in the field of expansion to the market of private health services in Slovenia.

ARX has raised four funds, totaling € 300m.