A successful IPO.
After a two year partnership which has seen Clínica Baviera cement its position as the leader in its sector, 3i has successfully led a €300m IPO on the Spanish Stock Exchange.
Founded in 1992 by Dr Julio Baviera, a highly renowned eye surgeon, Clínica Baviera has grown to become Spain's leading chain of ophthalmology clinics. The company offers a full range of ophthalmologic treatments, from refractive eye surgery for the treatment of myopia and astigmatism, through to the removal of cataracts and surgery for long-sightedness. In addition it is an emerging provider of aesthetic medical services under the Clínica Londres brand. Recent growth has been impressive with turnover increasing from €2.3m in 1997 to €59m in 2006.
Ambitious growth plans
3i first invested €40m of Growth Capital for a 30% stake in 2005, when Clinica's founding shareholders began to look for a partner who could work with them to achieve their business goals. 3i heard about the deal through a local sector contact and was chosen because of its impressive track record in the healthcare sector - and for its enthusiasm for the deal! Maite Ballester, Partner, 3i says: "Our industry knowledge and international network were key to winning this deal. As soon as we heard about the auction we started looking at potential acquisition opportunities for Baviera in the UK and almost completed a deal during the closing period. Even though that deal didn't take place, Baviera's management was blown away by our commitment and drive."
Active Partnership
3i immediately began to work on accelerating the expansion of the ophthalmic business, contemplating several acquisition opportunities in Spain and throughout Europe. The team was further strengthened by the introduction to the board of sector expert John de Zulueta, a member of 3i's Spanish Advisory Board and current Chairman and former CEO of Sanitas. Another key objective was to speed the growth of the new aesthetics clinics. 3i worked closely with management on strategy, culminating in the acquisition of the Clínica Londres brand that was completed in 2006.
Initial Public Offering
Following the impressive growth since 3i's investment, the board felt it was time to review strategic alternatives for future growth and a decision was taken to list the company. In April 2007, Baviera floated on the Madrid Stock Exchange with a market capitalisation of €300m. This was the first IPO of an ophthalmic refractive laser business in Europe and attracted significant interest both from healthcare and small to mid-cap institutional investors.
"3i's international network and the fantastic team work carried out by its professionals convinced us that 3i was the ideal partner for our company."
Eduardo Baviera, CEO, Clínica Baviera.
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