BaltCap Private Equity Fund II (BPEF II) sells the Estonian private healthcare companies – occupational healthcare provider Qvalitas Arstikeskus and dental care chain Unimed Grupp – to Mehiläinen, the leading private provider of health care and social services in Finland. BaltCap exits through selling its holding company DenCap, Mehiläinen acquires 100% of the companies.
BPEF II invested in Unimed and Qvalitas in 2015 and 2016, respectively. During the investment period, both companies successfully expanded their nation-wide clinic networks, upgraded medical equipment and IT-solutions and strongly improved their service offering.
Martin Kõdar, Managing Partner at BaltCap said they had a unique opportunity to back Unimed in becoming a leading player in Estonian dental healthcare and help Qvalitas to expand its reach as an occupational healthcare provider.
“Under our ownership, both companies have become vital countrywide service providers shaping the long-term development of health care sector in Estonia. We are grateful to the managements and medical professionals of Qvalitas and Unimed for their contribution and grit,” Kõdar emphasizes. “We also recognize the co-investors EIF, eQ Private Equity and healthcare industry expert Erki Mölder for their support and contribution in making this investment a success,” Kõdar adds.
“The entrance of Mehiläinen marks an important milestone for the Estonian healthcare market and will widen the service offering to patients and to the entire Estonian healthcare,” Oliver Kullman, partner at BaltCap says. “We value the long-term expertise of Mehiläinen in combining traditional medical operations and digital services and trust their vision as a strong strategic partner to Qvalitas and Unimed,” Kullman adds.
Janne-Olli Järvenpää, Mehiläinen’s CEO comments, “Both Qvalitas and Unimed are leaders in their fields in terms of revenue, quality and customer satisfaction. We have been following the development of the companies’ operations for years and have been impressed by both the competence of their experts and the ability of their management to develop the operations. In the future, Mehiläinen’s resources and competence in areas such as combining traditional medical clinics and digital services will support the continuous development of the companies’ quality and customer service.”
Marja-Liisa Alop, the CEO of Unimed emphasized BaltCap´s role as excellent partner with essential role in the company´s growth journey. “We were incredibly lucky to have an owner like BaltCap. Their experienced team guided our way out of a very difficult situation and helped to make a remarkable turnaround in Unimed´s development. The strategic backing of BaltCap enabled us to invest in new and existing clinics and was also critical when coping with the Covid-19 crisis. We look forward to working with Mehiläinen to further improve our patients’ satisfaction and provide the best working conditions to our team of professionals.”
“Together with BaltCap, we have greatly matured as a company and a team while going through a significant growth phase. I would like to thank BaltCap team for their partnership and trusting cooperation,” Tõnu Velt, the CEO of Qvalitas says. “We are excited to continue our growth and further our mission with a respected industry leader from the Nordics,” Velt added.
The sell-side advisers in the transaction were Superia (financial), Ellex Raidla (legal) and KPMG. The transaction value and other details are not disclosed. Completion is subject to regulatory approvals.
About BaltCap Private Equity Fund II
BaltCap Private Equity Fund II (BPEF II) is a buyout fund that makes equity investments in innovative companies based in the Baltic region focusing on buy-and-build opportunities. BPEF II was established in cooperation with the European Investment Fund (EIF) involved in the project through the Baltic Innovation Fund (BIF). The BIF is an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF. The other investors of BPEF II include the EBRD, Baltic pension funds, fund-of-funds and family offices.