General Atlantic will invest about 3 billion pesos ($160 million) in Mexican hospital operator Hospitales MAC as it seeks to expand operations in the country.
(Bloomberg) — General Atlantic will invest about 3 billion pesos ($160 million) in Mexican hospital operator Hospitales MAC as it seeks to expand operations in the country.
US private equity firm General Atlantic, which has invested $1.6 billion in Mexican companies since 2014, will help Hospitales MAC accelerate expansion plans and invest in technological infrastructure, it said in an emailed statement on Tuesday.
The deal will give General Atlantic a minority stake “north of 20%”, said Luis Cervantes, General Atlantic’s managing director in Mexico, in an interview. The private hospital sector in Mexico is an “attractive market opportunity” because of its high growth potential, he added.
The market is valued at about $6.8 billion and grows around 9% per year. With one bed per a thousand habitants compared to 2.1 in Brazil and five in China, “there’s clearly a lot less supply than there is demand,” he said. Cervantes noted that General Atlantic’s plan is to double the base of hospitals over the next two to three years, as well as acquire smaller mom-and-pop operators and continue to focus on the development of the existing hospital network.
As part of the transaction, Cervantes and Zeev Thepris, vice president at General Atlantic, will join the board of directors of Hospitales MAC. The stake was bought from MAC. Actinver will remain as a minority investor in the company.
Hospitales MAC was founded in 2008 in the Mexican state of Guanajuato and includes 20 hospitals in 17 cities in the country.
(Updates paragraphs three and four with comments from Luis Cervantes of General Atlantic.)
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