Physician group to sell minority stake in Fleury S.A. to Advent International

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Sep 16, 2015, 03:45 ET

SAO PAULO, Sept. 16, 2015 /PRNewswire/ -- A physician group that owns a significant interest in Fleury S.A. (BOVESPA: FLRY3) (the "Company"), the second-largest diagnostic services provider in Brazil, has agreed to sell a minority stake in the Company to Advent International ("Advent"), one of the largest and most experienced global private equity investors.

Under the agreement, Advent will acquire 13% of Fleury; the physician group will retain 28.3% of the Company, and another existing shareholder, Bradesco Seguros ("Bradseg"), will maintain its 16.4% ownership interest. The remaining 42.3% of Fleury will continue to be held by public investors. The transaction, which is subject to closing conditions and is expected to be completed in the fourth quarter of 2015, achieves the physician group's objective of partnering with a strategic investor for the sustainable development of the Company.

Founded in 1926, Fleury offers a broad range of premium diagnostic services in laboratory medicine, diagnostic imaging, pathology and other medical diagnostic services to hospitals and laboratories across Brazil. The Company is one of the most respected medical and healthcare organizations in the country, recognized for its attentive customer service, innovation and technical quality. In 2014, Fleury served more than eight million patients and performed 54 million tests at its 153 patient service centers nationwide under the Fleury, Weinmann, Felippe Mattoso, a+, Diagnoson a+ and Labs a+ brands. The Company offers approximately 3,500 clinical, pathological and imaging tests in 37 diagnostic areas and medical specialties, including cardiology, gastroenterology, gynecology, maternal-fetal medicine, neurology, urology, genetic counseling, endocrinology and hematology.

"The demand for diagnostic medicine is growing steadily in Brazil as a result of the country's expanding access to healthcare services, aging population and increasing focus on preventive medicine, and Fleury is strongly positioned to benefit from these trends," said Juan Pablo Zucchini, a Managing Partner in Advent's Sao Paulo office. "We are pleased to have the opportunity to work with the Fleury Board and management team and look forward to applying our global healthcare expertise and local market knowledge to help the Company strengthen its position as an innovative and leading player in the Brazilian healthcare industry."

Marcio Mendes, Vice Chairman of Fleury's Board, said, "Healthcare remains a top priority for the Brazilian population as preventive medicine and early diagnosis are becoming increasingly important areas of focus for patients and insurance providers. The physician group and the Fleury Board are pleased to welcome Advent as a new partner as we continue to focus on strengthening Fleury´s capabilities and geographic footprint. Advent has relevant resources and expertise that we believe will help our company achieve its goals."

"Fleury combines high-quality medical services, a proven track record of growth and a highly motivated management team," said Carlos Marinelli, CEO of Fleury. "Advent will bring to the partnership its knowledge and investment experience in the healthcare sector, and we look forward to working with them as we focus on leveraging our core brands and innovation to enhance the patient experience and drive additional value for our shareholders."

Advent is one of the leading private equity investors in Latin America. Since 1996, the firm has invested in 50 companies across the region and fully realized its positions in 33 of those businesses. Advent has been investing in the healthcare industry for more than two decades and has completed 35 investments in the sector across 13 countries worldwide. Recent healthcare investments in Latin America include Biotoscana, a specialty pharmaceutical company with operations throughout the region; United Medical, a Brazilian pharmaceutical company acquired by Biotoscana; and Laboratorio LKM, one of the leading specialty pharmaceutical manufacturers in Argentina.

Inspire Capital Partners and J.P. Morgan served as financial advisors and Machado Meyer served as legal advisor to the physician group. Credit Suisse served as financial advisor and Lobo & de Rizzo Advogados acted as legal advisor to Advent.

About Fleury S.A.
Founded in 1926, Fleury is a leading diagnostic services provider in Brazil, with 153 patient service centers and R$1.7 billion in revenue. The Company's main brand, Fleury, is the country's largest premium brand in diagnostic services. Fleury also operates Felippe Mattoso and Weinmann, two leading brands in the premium segment in the states of Rio de Janeiro and Rio Grande do Sul, respectively; a+, which operates 63 service centers in the states of Sao Paulo, Bahia, Pernambuco, Rio Grande do Sul and Parana, focusing on the intermediate- to high-income segment; Labs a+, a brand acquired in 2011 that operates 48 service centers in Rio de Janeiro; and business-to-business operations, which provides diagnostic services to 19 hospitals, six collection stations and more than 650 laboratories and dental diagnostic centers under the brand Papaiz. More information about Fleury can be found at ri.fleury.com.br.

About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in more than 300 private equity transactions in 40 countries and as of March 31, 2015, had $32 billion in assets under management. With offices on four continents, Advent has established a globally integrated team of over 180 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. After more than 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies. For more information, visit www.adventinternational.com.

SOURCE Advent International