Hapvida to Acquire Sao Francisco Saude for $1.26 Billion, Creating Brazil's Largest Healthcare Group

VCBeat (WeChat ID: vcbeat) has learned that healthcare group Hapvida recently announced it will acquire São Francisco Saúde for 5 billion Brazilian reais (approximately $1.26 billion). It is understood that Hapvida will pay 4.7 billion reais in cash, with the remainder paid through the acquisition of equipment and shares from Grupo São Francisco. Hapvida currently holds 3 billion reais in cash. The company will also issue 2 billion reais in debt to raise cash for the transaction.

In this acquisition, BTG Pactual and Riza Capital served as advisors to Hapvida. Goldman Sachs and Astoria Capital Partners provided advisory services to São Francisco Saúde. The transaction requires approval from the National Supplementary Health Agency (ANS), the Administrative Council for Economic Defense (CADE), and the shareholders of both companies. Following the announcement of the acquisition, Hapvida’s share price rose 7% on the day, reaching BRL 32.75 per share.

Following the completion of the acquisition, Hapvida will continue to pursue its business expansion plans. According to an official statement from Hapvida, the company acquired approximately 1.8 million customers from São Francisco Saúde, bringing its total customer base to 5.8 million. It is reported that Hapvida already holds a dominant position in Brazil’s North and Northeast regions; this acquisition will enable the company to expand its operations into the South, Southeast, and Central-West regions, solidifying its status as the largest healthcare company in Brazil.

São Francisco Saúde is one of the largest healthcare companies in Brazil. The company provides health plans for individuals, families, and businesses in five Brazilian states, including Minas Gerais, Mato Grosso do Sul, and Mato Grosso. It is a subsidiary of Grupo São Francisco (São Francisco Group). Grupo São Francisco holds numerous assets in the healthcare sector, including São Francisco Hospital, the largest private hospital in the São Francisco region; São Francisco Odontologia, a dental care company; and São Francisco Resgate, a roadside assistance company.

Hapvida, a healthcare group founded by oncologist Candide Pinheiro de Lima in 1979 and headquartered in Ceará, Brazil, focuses on the vertical integration of hospital medical services. The company serves approximately 4 million members and operates 27 hospitals across Brazil.

A Hapvida executive stated, “Hapvida and São Francisco Saúde share similar corporate cultures. With São Francisco Saúde joining us, we are now able to serve customers nationwide. We will continue to provide excellent medical services and improve the lives of customers across the country.”

(Compiled by Jiao Yanli)