New Zealand pathology business to be acquired by NZ Super and Ontario Teachers' Pension Plan
Healthscope has agreed to the sale of its New Zealand pathology business, Asia Pacific Healthcare Group (APHG), to New Zealand Superannuation Fund and the Canadian Ontario Teachers’ Pension Plan (OTTP), each taking a 50 per cent share. The sale is valued at more than NZD$550 million and is subject to customary approvals including approval from New Zealand’s Overseas Investment Office, with completion expected in the next six months.
The sale is a major transaction for the New Zealand market, and a significant direct investment for the New Zealand Superannuation Fund.
APHG provides pathology services to 75 percent of New Zealand’s population with over 2,000 staff operating across its network of 25 laboratories and 150 collection centres, and has been heavily involved in providing testing as part of New Zealand’s response to COVID-19.
Leading law firm, MinterEllisonRuddWatts advised Healthscope on the sale process. Funds managed by Brookfield Asset Management are the majority owners of Healthscope. The transaction continues MinterEllisonRuddWatts long standing relationship with key client Brookfield, with the firm having most recently advised Brookfield on its joint venture with Infratil to acquire Vodafone NZ.
The MinterEllisonRuddWatts team for the Healthscope transaction was led by Corporate Partner Mark Forman, and included partners Steve Gallaugher, Tom Maasland and Andrew Ryan, senior associates Igor Drinkovic, James Marriner, Vanessa Hunter and Brendon Prebble, and solicitor Brad Cope.
Upon reaching agreement, Partner Mark Forman said: “We are delighted to have worked alongside Brookfield and Healthscope, to assist them reaching agreement with NZ Super and OTTP. The transaction is a substantial investment in a key participant in the New Zealand healthcare sector for NZ Super and OTPP and is consistent with Healthscope’s long-term strategic refocus on its Australian hospital operations.”