New Frontier has announced that it will acquire private healthcare operator United Family Healthcare for $1.44 billion from investment firm TPG and Fosun Pharma.
The deal will create China’s largest publicly listed integrated health care service company. After the acquisition, United Family Healthcare will be rebranded as New Frontier Health, which will be listed on the New York Stock Exchange.
Existing stakeholders of the United Family Healthcare and Fosun Pharma will roll a portion of their ownership in the healthcare operator and together they will own an aggregate of approximately 12 percent of the rebranded company at closing. Fosun Pharma is expected to remain a strategic partner.
New Frontier will fund the acquisition with the $478 million it raised in its initial public offering. The company has an additional $711 million in equity commitments from investors such as Vivo Capital, Nan Fung Group, and a group of other strategic investors. The company is expected to utilise $565 million from this fund for the acquisition.
According to the deal, the healthcare operator will have exclusive rights to manage New Frontier Group’s flagship Shenzhen city center hospital, which will anchor its asset-light management strategy.
While Mr. Antony Leung, chairman of New Frontier will become the chairman of the rebranded company’s board of directors, Mr. Qiyu Chen, chairman of FosunPharma will be the co-chairman. Ms. Roberta Lipson, founder, and CEO of United Family Healthcare will be the CEO.
“Healthcare has been an important strategic focus for New Frontier. Our goal is to continue building and growing our integrated healthcare platform in China. We aim to provide high-quality and reliable healthcare services to patients and families across their life cycles,” Antony Leung, co-founder, and chairman of New Frontier Group told the media.