QIC in major healthcare transaction

Brisbane, 23 May 2017: A consortium of Goldman Sachs Principal Investment Area (GS PIA), QIC and Pagoda Investment (Pagoda) have signed an agreement to acquire a majority interest in Icon Group (Icon), Australia's fastest growing cancer care provider. The acquisition is subject to shareholder approval.

The investment will enhance Australia’s position as a provider of outstanding oncology care by delivering capital and expertise to help grow Icon’s services locally and internationally.

Headquartered in Brisbane and operating throughout Australia, Icon is Australia's largest private day oncology provider. Icon has expanded to Singapore, China and New Zealand, and is poised for further regional expansion. The Group’s comprehensive state-of-the-art cancer care includes radiation oncology, day oncology hospitals, pharmacy and chemotherapy compounding. Icon is highly successful at bringing these services to previously underserved locations.

Mark Middleton, Icon Group’s CEO, said: “The partnership supports Icon’s long-term growth strategy to deliver the best cancer treatment possible, to as many people as possible, as close to home as possible.”

“This next step enables us to continue to deliver and expand our comprehensive cancer care offering.”

“In Australia, we’ve delivered cancer care services - once only available in the city - to people in the bush. This reduces the emotional and social burden of cancer, and ensures regional patients have the best access to cancer treatment possible. ”

“Our partnership with GS PIA, QIC and Pagoda is founded on the traditional Australian approach of doing our very best work for the people we serve – patients, staff, and the wider healthcare industry. With the cancer burden in Asia set to outstrip that in the western world, there has never been a more important time for us to use our expertise and ethos to make a difference for people globally.”

Marcus Simpson, QIC’s Head of Global Private Capital, said: “We are pleased to support the growth of a business that saves lives. While cancer rates are increasing, many people lack access to top-quality cancer care. Survival rates and quality of life improve greatly when the best possible care is available.”

“Icon has made enormous headway meeting growing demand for world-class oncology services. Icon is positioned to expand throughout the Asia-Pacific region and make a real difference.”

"This acquisition aligns to QIC Global Private Capital’s regional strategy of investing in operating businesses in sectors such as healthcare where Australia has a competitive advantage. We are again bringing together local and global capital, and committing our expertise as investors and owners, to assist an Australian business grow in the region, and link to Asia." 

Stephanie Hui, Managing Director of GS PIA, added: “GS PIA is delighted to partner with Icon.  We are attracted to the quality of the business, the quality of the management team and its growth potential.  With our strong network and a large portfolio in health care and insurance companies in Asia, we look forward to working closely with the management team and co-investors to assist the company with its further expansion.”

James Ieong, Managing Partner, Pagoda Investment, said: "Pagoda and QIC benefit from a long term working relationship. We are delighted to work together again in investing and supporting growing businesses in Asia-Pacific where addressing people's growing needs is the focus. Pagoda’s seasoned and experienced investment team knows well how to work with local businesses to bring them internationally. Icon has enormous growth potential and is making a difference to local and international communities. We see opportunities for Icon in Asia and China in particular. We’re well placed to assist Icon with this growth.”

Icon was advised by Credit Suisse, EY & King & Wood Mallesons. The acquiring consortium was advised by Goldman Sachs, Corrs Chambers Westgarth and Deloitte.

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About Icon Group:

Icon Group is Australia’s fastest growing cancer care provider. Headquartered in Brisbane, Australia, the Group has expanded globally to Singapore, China and New Zealand. Icon Group is among the top ten healthcare companies in Australia and the only leading national healthcare company based in Brisbane.   It delivers over 1 million patient interactions annually.

The Group encompasses Icon Cancer Care: Australia’s largest private day oncology provider with six sites nationally; Radiation Oncology Centres (ROC): Australia’s fastest growing radiation oncology provider with 11 sites nationally and a further seven in development; Icon Cancer Centre: delivering an integrated approach to care with day oncology, radiation oncology and pharmacy located in one comprehensive centre with three centres nationally and another five in various stages of development; Epic Pharmacy: provider of medication management and pharmacy services to the hospital, oncology and aged care sectors; and Slade Health: one of Australia’s largest chemotherapy compounders with three TGA-approved manufacturing sites across the eastern seaboard.

Icon Group has already established inroads to the Asia market where the cancer burden is predicted to increase by 70% in the next two decades, well above growth in Western markets. In combination with bricks and mortar, Icon Group will extend its delivery of cancer care - both domestically and internationally - using technology and telehealth.

Current management and organisational founders will continue to lead the business.  Icon’s talented doctors, medical specialists and staff remain dedicated to providing high-quality care, increased patient coverage, and business growth.

For more information, please visit: http://icongroup.global/

About GS PIA:

Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Principal Investment Area (GS PIA) is the primary center for the firm’s long-term principal investing activity. With nine offices across seven countries, GS PIA is one of the leading private capital investors in the world with equity and credit investments across corporate, real estate, and infrastructure strategies.  Since 1986, the group has invested over US$170 billion of levered capital across a number of geographies, industries and transaction types.

For more information, please visit: www.gs.com/pia.

 

About QIC:

QIC is a global alternative investment firm offering infrastructure, real estate, private capital, liquid strategies and multi-asset investments. It is one of the largest institutional investment managers in Australia, with A$81.1 billion (US$61.8 billion)[1] in funds under management. QIC has over 600 employees and serves more than 100 clients including governments, pension plans, sovereign wealth funds and insurers from Australia, Europe, Asia, Middle East and the US. Headquartered in Brisbane, Australia, QIC has a number of offices globally. 

QIC Global Private Capital, with A$4.2 billion (US$3.2 billion)[2] in assets under management, are operationally-focused investors targeting investment themes and strategies that provide capital to build successful companies around the world.  This ranges from investing in start-ups in the USA and China to ownership of one of the largest beef producers in Australia.

For more information, please visit: www.qic.com.

About Pagoda Investment:

Pagoda Investment is a growth capital and buy-out investment firm based in Beijing. Pagoda invests in growing Chinese and Western companies benefiting from China's growing consumption population.  The team has over 100 years of combined private equity investing and operational experience in China, Australia, Germany and the U.S.  Key focus sectors include healthcare, technology, consumer and advanced industrials.

For more information, please visit:  http://www.pagodainv.com/LG-en/.

More information:

Samantha Smith

Carden Calder

+61 9018 8602 or +61 424 790 205

+61 2 9018 8601 or +61 403 333 904

samantha@bluechipcommunication.com.au

carden@bluechipcommunication.com.au

 

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[1] As of 31 March 2017.

[2] As of 31 March 2017.

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