A consortium of Finnish institutions, including LocalTapiola, Varma and Ilmarinen, together with Mehiläinen management and in partnership with lead investor CVC Capital Partners' ("CVC") Fund VII announced today that they have agreed to acquire Mehiläinen, a leading private healthcare and social care provider in Finland. The change in Mehiläinen ownership does not impact the company's employees, customers or business partners. Mehiläinen's management team will remain unchanged and as owners in the company.
Founded in 1909, Mehiläinen has a long and proud history of providing high quality and customer centric healthcare and social care services to the Finnish population. Today, the company provides a full range of healthcare and social care services through a comprehensive network of over 360 units and employing more than 14,000 professionals. Healthcare services ranges from outpatient clinics, occupational healthcare, specialist care and dental care, whereas social care services include elderly care, and disabled, mental rehabilitation, and child welfare.
Janne-Olli Järvenpää, CEO of Mehiläinen, said: "I am very excited to continue the strong partnership with LocalTapiola, Varma and Ilmarinen, and welcoming CVC as a new partner. With the new partnership group, I am excited about the future of Mehiläinen where our key focus will be to continue investing in our network and to provide best-in-class healthcare and social care services for the benefit of our customers, building on the many years of successful cooperation and the strong working relationship with KKR and Triton. I believe being a private domestic non-listed company gives us flexibility and agility to respond to the rapid transformation in the healthcare industry, driven by digitalisation, increasing customer requirements, intensifying competition and regulatory uncertainty."
Erkki Moisander, CEO of LocalTapiola, said: "By increasing our strategic position in Mehiläinen, we are reforming the Finnish healthcare together with our partners and also increasing the domestic ownership. As LocalTapiola is a company promoting lifelong security, we are increasing our investments in preventing illness among our customers with the latest digital tools. For example, we recently developed an innovative virtual hospital with Mehiläinen which offers services to all personal insurance customers without a face-to-face meeting with a doctor, demonstrating our ambition to provide care using pioneering methods."
Varma and Ilmarinen both plan to continue to be shareholders in Mehiläinen and to support its next growth phase.
CVC has a long history of partnering with providers of healthcare services across Europe. CVC has successfully partnered with the management team of QuironSalud, a leading Spanish provider of healthcare services; Elsan, a leading French private hospital operator; Vitalia Home, one of Spain's largest national groups in the management of social and sanitary services and centres; and, Metropolitan Hospital Group, one of the largest private hospital groups in Greece.
Tomas Ekman, Partner in CVC's Stockholm office, commented: "We are very excited about the opportunity to partner with the management team of Mehiläinen along with reputable Finnish institutions, LocalTapiola, Varma and Ilmarinen. Mehiläinen is an institution in Finnish healthcare and social care, renowned for its customer centric model and best-in-class services. On a personal note, I very much look forward to joining the Mehiläinen board of directors again, supporting Janne-Olli and the wider management team in the next phase of Mehiläinen’s more than 100 year long and impressive history."
CVC was advised by Access Partners, Avance Attorneys and PwC.