Combined company now has annual revenue of R$6.1bn, closer to market leader Dasa

07/01/2022

---

Medical laboratory chain Fleury has acquired competitor Hermes Pardini, in the wake of a series of other recent deals involving large healthcare groups, which demonstrates that the consolidation in the segment has reached the level of merging competitors.

Earlier this year, the association between Hapvida and NotreDame Intermédica — the largest healthcare operators — was approved, and the business combination between giants Rede D’Or and SulAmérica was announced.

In other words, both the paying sources (healthcare plan operators) and the medical service providers (hospitals and laboratories) will negotiate on a much larger scale.

The combination between Fleury and Hermes Pardini boasts an annual net revenue of R$6.1 billion, a figure close to that of the market leader, Dasa, which closed last year with R$6.5 billion. The EBITDA expected is R$1.6 billion, with the possibility of increasing between R$160 million and R$190 million per year this indicator due to synergies. The combined company will process 245 million exams per year.

For years, Hermes Pardini is sought by investors and competitors, but there was resistance from the founding family in giving up control of the business. In 2011, the asset management company Gávea acquired a 30% stake, and in 2017, the Minas Gerais-based group went public. But still, rumors persisted, mainly that it would partner with Alliar, recently acquired by businessman Nelson Tanure. Fleury itself tried to negotiate with Alliar, but after Mr. Tanure’s arrival, the company backed out and went after Pardini.

In the new company, siblings Victor, Regina and Áurea Pardini will each hold 7.3% of the shares. Bradesco will have 20.2%, the founding physicians will hold 13%, and the free float will be 44.9%. The business combination foresees an exchange of 1 share of Pardini for 1.2135 shares of Fleury, plus R$2.15 for the shareholder of the chain headquartered in Minas Gerais. Fleury’s cash disbursement is R$273 million.

According to Roberto Santoro, CEO of Hermes Pardini, the decision to sell was motivated by recent moves by healthcare groups joining other fields. Fleury itself has been acquiring clinics, and Dasa now owns more than 10 hospitals.

“It’s a way to resignify medical diagnosis, which is very important, 70% of medical decisions are based on exams. There is, in my opinion, a deviation of the model with the entrance in other fields,” Mr. Santoro said.

With the acquisition of Pardini, whose brand will be maintained for at least 10 years, Fleury is entering a segment in which it has little activity: the processing of tests for other laboratories, which represents the largest source of revenue for Pardini — which processes 111 million exams for other chains, while in Fleury this number is 1 million per year.

Jeane Tsutsui — Foto: Julio Bittencourt/Valor

Jeane Tsutsui, who has been CEO of Fleury for about a year, says that the operation is very complementary.

“We are more active with our units, and Pardini has a great logistics infrastructure; in addition, we are in different places. I don’t see cultural problems, there are a lot of complementarities,” Ms. Tsutsui said.

Also according to her, Fleury continues its strategy of acquiring other health assets such as clinics to complement the patient journey, that is, to be present in various stages of medical care. Today, Fleury owns daycare hospitals, ophthalmology, and orthopedics clinics, among others.

*By Beth Koike — São Paulo

Source: Valor International

https://valorinternational.globo.com/