Fidelidade sells 40% of Luz Saúde to Australian fund Macquarie

Fidelidade has signed an agreement with Macquarie Asset Management (MAM) to sell a 40% stake in Luz Saúde for a base price of €310 million, valuing the company (Enterprise Value) at over €1.1 billion. After months of negotiations with three candidates, Fidelidade has thus reached an agreement with the Australian fund, through Macquarie European Infrastructure Fund 7, which allows it to maintain a majority position and strengthen its investment capacity.

The sale of 40% of Luz Saúde is the second attempt at a deal. In April last year, Fidelidade attempted to disperse capital on the stock exchange, but at the time justified the withdrawal of the operation due to market conditions. Now, it has opted for another sales model, with a competitive tender and final negotiations with three competitors. With this operation, Fidelidade not only guarantees a higher financial return than the deal that was on the table in April last year, but also frees up capital for new investments by the insurer and, in addition, gains a capital partner with financial strength and experience in the sector in markets such as Ireland and the US for the internationalisation of Luz Saúde.

For Jorge Magalhães Correia, Chairman of the Board of Directors of Fidelidade and Luz Saúde, “the partnership with Macquarie is based on a shared vision of the company’s potential and the quality of its management team, while opening up new growth opportunities in an area that will continue to be a priority for the group”. In fact, the deal will have another consequence: Luz Saúde’s current management mandate will be interrupted, to start a new four-year term. The Australian fund will have at least two directors, but Isabel Vaz will remain as CEO.

Rogério Campos Henriques, CEO of Fidelidade, says that “this sale is part of Fidelidade’s investment optimisation strategy and the medium- and long-term growth defined for Luz Saúde”. “The offer received from Macquarie Asset Management met all the conditions set for us to take this step, and we are confident that it is the right partner to continue to consistently implement the growth strategy defined for Luz Saúde”, he says.

Macquarie Asset Management is a division of Macquarie Group, an Australian financial services and asset management conglomerate, and is considered the largest infrastructure asset manager in the world. It reports having 180 subsidiaries, more than 2,200 employees in 21 markets and total investments of $941 billion.

In the healthcare sector, MAM acquired Beacon Hospital in Ireland and launched the Health Wave Partners senior living platform in the United States, where it also has stakes in healthcare energy efficiency projects and investments in eight hospitals in Massachusetts. The Australian group was founded in Sydney in 1969.

Luz Saúde, for its part, has 14 private hospitals and 15 clinics, with more than 1,100 beds and 56 operating theatres, and employs more than 14,000 people. Last year, the group’s turnover rose by 10% to €733 million, reflecting the increase in the volume of medical procedures, particularly in the units where the group has invested in recent years, and also the updating of prices for medical services provided. It is estimated to have made a profit of close to €40 million.

The transaction is expected to be completed by the end of 2025, subject to the usual conditions for this type of operation, namely obtaining the necessary regulatory approvals.