Sunday, July 18, 2010

Carlyle Group & TPG Win Healthscope

Private equity underwriters (PEU's) paired up to snare Healthscope, a for-profit hospital company in Australia. The Carlyle Group and TPG beat out KKR. The PEU's offered $6.26 a share for the firm. The board bit on the bid, valued at $2.7 billion. WSJ reported:

"After careful consideration, the board has unanimously concluded that the consortium's offer provides shareholders with an excellent opportunity to realize considerable value from their investment in Healthscope," Healthscope Chairman Linda Nicholls said in a statement.
Carlyle expects 30% returns. Will they bleed Healthscope the way KKR sucked billions from HCA? What will this do to Australian health care costs? What implications does it offer for America's?