​MedLife, the market leader of private medical services in Romania and the only company with Romanian capital among the leading operators of private medical services, announces the signing of a syndicated loan for a total amount of 228 million euros to refinance and increase the existing syndicated loan of 50.7 million euros . The new funds represent a medium- and long-term reserve that will be used for new acquisitions and development processes according to patient needs. In the short term, the company says that a period of consolidation and settlement follows the dynamic expansion recorded in the first nine months of 2022.

• After 13 acquisitions and 7 organic projects announced in the first nine months of the year, MedLife is announcing a period of business consolidation and optimization with a focus on improving margins.
• In the medium to long term, MedLife continues its strategy of expansion and acquisition both nationally and regionally, with the new funds raised as a reserve in this regard.
• The development of the portfolio of services, especially in niche areas, remains a priority for the company.
• A Romanian company listed on the Bucharest Stock Exchange, with a well-defined strategy, MedLife has over time demonstrated the ability to adapt and develop customized solutions according to the needs of millions of patients.

The syndicate of banks that signed the new loan granted to the MedLife group consists of the Romanian Commercial Bank as coordinator, lead arranger, documentation agent, guarantee and financing agent, Raiffeisen Bank, BRD Groupe Societe Generale, Banca Transilvania, ING Bank NV Amsterdam Bucharest Branch and Erste Group Bank AG, as the main authorized organizers and financiers.

Before using the newly available funds for development and new transactions, MedLife will soon focus its efforts on integrating the Group of 13 companies acquired this year, using synergies at the national level to optimize operations and consolidate margins. In addition, it is a cyclical process predicted by MedLife’s strategy once every 2-3 years, and dynamic periods associated with large investments are replaced by periods of business consolidation and optimization.

“For almost 30 years, we have been developing at a steady and balanced pace with a very clearly defined business strategy. 2022 was an extremely dynamic year for MedLife: no less than 7 new facilities and 13 deals were opened across the country. So, there is a period of reckoning at the Group level, focused on the integration of new acquired companies, on streamlining processes, as well as on improving margins, a process that we cycle every 2-3 years.

In the medium to long term, we remain committed to expansion and development, and as we have already communicated to shareholders, the recently available funds represent a reserve in this direction for new acquisitions or organic projects. In the short term, 6-9 months, we will be attentive to geopolitical events, the development of the consumer market and the industry as a whole, and act cautiously according to trends. We are ready to adapt to any context according to the needs of our patients,” said Mihai Marku, President and CEO of MedLife Group.

Despite the unstable economic context this year, in the first nine months of 2022, MedLife announced no less than 13 important deals, as well as 7 other organically developed projects, thus managing to cover a complex spectrum of patient needs. Both companies offering integrated services, including Medici’s, Profilaxis, ProLife Clinics, Medicris, Muntenia Hospital and Provita Group (both pending approval), as well as companies specializing in niche services such as OncoCard, Sweat Concept fitness, the SanoPass platform and ophthalmological clinic “Optikristal”.

“We are glad that together with MedLife we ​​have built a long-term relationship that started with a strategic goal that we believe in: the physical health of Romanians, through the development of private medical services in Romania and facilitating access to the highest medical services together with the financial status of companies from local footprint and sustainable development of MedLife. We are partners in the new cycle of business consolidation and expansion for MedLife, we believe in their plans and support them,” said Oana Mihaela Makoveychuk, Head of Consumer and Services Department at BCR..

“We are honored to coordinate this new syndicated loan for MedLife Group, one of our strategic partners. The underwriting was successfully completed due to significant oversubscription, indicating both the value of MedlLife, the market leader in private healthcare in Romania, and the willingness of banks to finance this sector,” says Grazia Popescu, Senior Banker Loan Syndication BCR.

MedLife ended the first 9 months of 2022 with a proforma consolidated turnover of 1.3 billion lei, which is 27% more than in the same period last year, registering double-digit growth for most business segments. Currently, MedLife Group owns the most powerful diagnostic and treatment network in Romania, with 700 own and partner facilities throughout the country and more than 5.5 million unique patients who have benefited from preventive, rehabilitation, treatment and hospitalization services. At the same time, nearly 800,000 employees benefit from medical subscriptions through MedLife subscriptions.

Article supported by MedLife