While there are still two weeks before any indicative offers arrive for cancer care provider Icon Group, there are early signs that it could turn into the hottest private equity shootout in the world. ‘year.
Street Talk brought down a bunch of serious suitors – Morrison & Co, Ontario Teachers’ Pension Plan, EQT Infrastructure, QIC Ltd Infrastructure Team, Stonepeak Infrastructure – and now we can add a few more to the list.
There’s Baring Private Equity Asia, which is supposed to be working on the briefing memorandum, as well as Singapore’s Keppel, which is scratching a lot of Australian assets.
There are also a bunch of national pension funds that have discussed co-investment with their third-party infrastructure and PE managers.
As we said, it is still early days. Auctioneers Goldman Sachs and Jefferies are calling for first-round bids on September 7.
Goldman Sachs and Jefferies are leading the auction on behalf of the majority owners of Icon, including the Goldman Sachs core investment team, QIC’s private equity unit, and Chinese firm Pagoda Investments. Other investors include the company’s doctors and co-founders Cathie Reid and Stuart Giles.
A sales flyer sent to potential buyers earlier indicated that Icon has over 30 years of private cancer care experience, owns 45 centers around the world, and operates with an EBITDA margin of over 20%. The flyer said eighty percent of the group’s business was in Australia, in terms of revenue, while cancer care made up half of its revenue and the rest was split between membership (30 percent) and the pharmacy (20 percent).