INVL Baltic Sea Growth Fund, the leading private equity fund in the Baltics, and other shareholders, have signed an agreement to sell InMedica Group, Lithuania’s largest private healthcare network, to Mehiläinen, Finland’s largest social and healthcare provider with fast growing international presence. The transaction will be concluded upon approval by the competition authorities.
InMedica Group is a network of medical clinics and hospitals with over 3,500 employees and 89 facilities. The group provides over 2.7 million doctor visits annually and is a primary healthcare provider for more than 310,000 registered patients. InMedica Group’s revenue is expected to exceed EUR 150 million in 2024.
With a history going back 115 years, Mehiläinen is a high-quality private provider of social and healthcare services, having presence in Finland, Sweden, Germany, and Estonia. It serves 2.1 million customers annually, and services are produced at 840 locations by more than 37,000 employees and private practitioners. InMedica Group’s service portfolio and business model align closely with Mehiläinen’s, underpinning the rationale for the transaction, for patients, for medical professionals and employees.
InMedica Group’s current shareholders are the INVL Baltic Sea Growth Fund, the leading private equity fund in the Baltics, AB City, private group of healthcare and pharmaceutical manufacturing companies, and private company Litgaja, controlled by Kęstutis Broniukaitis, InMedica’s founder and CEO. Mehiläinen’s investment in InMedica is expected to be the largest one in healthcare services in the Baltic countries.
Nerijus Drobavičius, Partner at INVL Baltic Sea Growth Fund and Chairman of the Board at InMedica Group, commented as follows: “This is a landmark transaction for our fund and its investors, as well as, for the entire Lithuanian healthcare market. We are very happy that our fund has been able to help to transform InMedica Group into Lithuanian market leader and to become an integral part of the healthcare system. The company has grown significantly in services and geographically. Our goal was to ensure the continued development of the company beyond our period of ownership, and we believe that Mehiläinen, with its expertise in healthcare, its knowhow and corporate culture represents an ideal strategic investor for InMedica Group. I would also like to express my heartfelt thanks to the talented InMedica personnel and our investors.”
Kęstutis Broniukaitis, CEO at InMedica Group, commented as follows: "As the company has grown over the last several years, bringing with it a significant increase in our responsibilities to patients, employees, partners, authorities, and society as a whole. That is why we are thrilled to have Mehilainen Group, a trusted and reputable partner, supporting us moving forward. Joining forces with Mehiläinen offers a valuable opportunity for professional collaboration, enhanced expertise, and the introduction of advanced technologies to Lithuanian customers. Together, we are on a lifelong mission to improve the quality and access to healthcare services for the benefit of patients in Lithuania.”
Expansion into Lithuania aligns with Mehiläinen’s growth strategy and will make Mehiläinen the largest private healthcare provider in the Baltic countries.
Andreas Taalas, Mehiläinen Business Line Director for the Baltic region, said: “The private healthcare market in Lithuania is growing rapidly, and InMedica Group is a market leader with high quality and excellent reputation. I’m excited to work with Kęstutis and the management team. Together we can continue the successful track record of growth and further enhance the services provided.”
The transaction does not have a direct impact on InMedica group’s personnel or patients and the day-to-day operations will continue as usual, ensuring a seamless transition for all stakeholders. The management of InMedica Group will continue to grow and develop the company together with Mehiläinen.
InMedica Group was advised by investment bank Jefferies (M&A strategy), Deloitte (financial and tax vendor diligence), L.E.K. Consulting (commercial diligence), and Walless (as legal counsel), while Mehiläinen's advisors included Porta Finance (M&A), EY (financial and tax), and Cobalt (legal counsel).
New INVL private equity fund to be launched
The INVL Baltic Sea Growth Fund has consistently created value for its investors and since its launch in 2019, it has completed 9 portfolio investments at the end of Q3 2024. The acquisition of InMedica confirms the realization of the value created in one out of the nine portfolio companies of the fund. As the fund is nearing the end of its investment period, Invalda INVL Group is currently fundraising for the new INVL Private Equity Fund II, targeting a size of EUR 250 million. The new fund will be managed by the same team that has demonstrated the ability to execute complex transactions and manage companies to ensure their rapid expansion and value growth. This team will continue the successful strategy of the INVL Baltic Sea Growth Fund.
About InMedica Group
With a network of 84 clinics and 5 laboratories across 27 cities, InMedica Group is the largest private healthcare service provider in Lithuania. It is the owner of InMedica, Kardiolita Hospital, and VIC Dental Clinics. InMedica Group offers a comprehensive range of medical services, including family care, diagnostics, outpatient care, surgery, dental care and other medical services. InMedica Group has over 3,500 employees and provides healthcare services for over 310,000 registered patients. In 2024 InMedica Group’s revenue is expected to reach approximately EUR 150 million.
About Mehiläinen Group
Mehiläinen Group is a well-known and highly respected private provider of social and healthcare services, offering comprehensive high-quality services in its home market Finland and in Sweden, Germany, and Estonia. Mehiläinen offers digital healthcare software solutions through its subsidiary BeeHealthy. With a 115-year history, Mehiläinen is a rapidly developing and growing leader in the industry. It serves 2.1 million customers annually, and services are produced at 840 locations by more than 37,000 employees and private practitioners. Mehiläinen invests in the possibilities of digitalisation and the effectiveness and quality of care in all its business areas.
About the INVL Baltic Sea Growth Fund
With a fund size of EUR 165 million, the INVL Baltic Sea Growth Fund is the leading private equity fund in the Baltics. Its anchor investor is the European Investment Fund (EIF), which is a part of the European Investment Bank, and committed EUR 30 million with the support of the European Fund for Strategic Investments (a key element of the Investment Plan for Europe, or the Junker Plan) while also allocating resources from the Baltic Innovation Fund (a “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia, to increase capital investment in high-growth potential small and medium-sized enterprises in the Baltics). The fund is managed by Invalda INVL group, which companies manage or have under supervision more than EUR 1.6 billion of assets.
About AB City
AB City is the parent company of two economically and socially significant joint-stock companies – Repharm and Olpha. The group includes companies operating in healthcare services and laboratory testing, pharmaceutical retail and wholesale, the production of medicines and medical devices. The group’s companies are represented across the Baltic region and export medicines and medical devices to at least 60 countries worldwide. AB City’s development strategy is focused on investments in expanding high quality and innovative healthcare and laboratory services through Baltics and other European Union countries, while also broadening medicines product portfolio to strengthen Baltics pharmaceutical manufacturing capacities.
Issuer's representative for additional information:
Nerijus Drobavičius, Partner at INVL Baltic Sea Growth Fund
Nerijus.Drobavicius@invl.com
