CAPIO

Capio is a Swedish provider of healthcare services for both public and private customers via its private “acute general hospitals” (privately funded hospitals which admit patients for surgical operations and other medical treatments), diagnostic centres and private psychiatric hospitals. It is active in Sweden, Norway, Finland, Denmark, France, Spain, Germany and the UK. As a listed company, it had become a leading provider of healthcare services in European, expanding into several markets.

Apax Partners has significant experience in the healthcare industry, with its minority investment in General Healthcare Group and buyout of Mölnlycke. Coupled with its financial strength, Apax Partners saw an opportunity to put these resources to use in accelerating the growth of Capio. Its then Executive-Vice president, Paul Hokfelt felt private equity and Apax Partners in particular was an attractive proposition.

“After de-listing I felt it was important to drive processes for more effective production and healthcare services. Those were the things I expected private equity would bring”.

“I expected Apax to have resources to very quickly understand what is quite a complex business; which they did and they do”.

“Capio is also an international business with divisions in several European countries and obviously Apax have an international presence and they can help with supporting the businesses in the various markets”.
Paul Hokfelt, Chairman Unilabs (Ex-CEO Capio)

Together with Apax SA and Nordic capital, Apax Partners Europe successfully de-listed Capio subject to the divesture of Capio’s UK business to avert competitive issues that might arise from Apax Partners’ interest in General Healthcare Group. Under new ownership Capio has undergone significant structural changes.

It was agreed between Apax and the management team that it made operational sense to carve out the diagnostics business, which should operate with its own business model. To give Capio diagnostics the mass to operate as a stand-alone business, the acquisition of Unilabs, a leading Swiss based diagnostics business was pursued.

“(…) we agreed that we would seek to purchase a bigger player that would allow for the separating out of Capio diagnostics”.

“Apax was very supportive and very participative in the difficult process of the acquisition of Unilabs. Unilabs is a listed company meaning that a buyout would be complex……there were various technical difficulties in the deal but I must say the resources provided by Apax helped towards managing them”.Paul Hokfelt, Chairman Unilabs (Ex-CEO Capio)

The merger of Capio diagnostics and Unilabs led to the creation of a leading laboratory services group under the name Unilabs. It operates with over 100 laboratories and testing facilities across Europe able to offer a broad portfolio of services. The process allows Capio Healthcare a greater focus on its own business model in its quest to consolidate its position in Sweden and expand internationally.

Much has changed for Capio in the short space of time since its change in ownership structure. The signs thus far are positive, with the creation of a leading laboratory services business and a greater scope to focus on its Healthcare business.

“The Capio business has changed very dramatically over a short period of time. (…) we have gone from being centralised to being very decentralised, from being a company with a two business model to being two companies each with its own business model. All these changes are positive and were supported by the shareholders”.

“Apax have contributed to improving the reporting routines and the controlling of the company. Significant improvements have been achieved but there is room for further improvement. They have experience in knowing what the requirements are to track your business”.

The journey is only half complete but the combined businesses should see value created for Apax Partners and its investors in the future.