The €40m investment will enable Clínica to expand its operations and move into new fields such as plastic surgery.

Founded in 1992 by Dr Julio Baviera, a highly renowned eye surgeon, Baviera now has 25 clinics specialising in eye surgery across Spain and a staff of 80 qualified  ophthalmologists.

The company offers a full range of ophthalmological treatments, from refractive eye surgery for the treatment of myopia and astigmatism, through to the removal of cataracts and  surgery for long-sightedness.

The business growth of Baviera has been impressive with turnover growing from €2.3m in 1997 to €38.1m in 2004 - an impressive year on year growth rate of 18%.

Commitment and drive
In April 2005, Baviera's founding shareholders decided to sell 30% of the company's equity through an auction process. 3i heard about the sale from a former Ernst & Young partner who was familiar with the company.

Over a six week period 3i presented its case and beat off competition from four other companies to win the deal. 3i was selected because the management team was impressed by its track record in the healthcare sector and its enthusiasm for the deal.

Maite Ballester, 3i Partner, 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 team were blown away by our commitment and drive."

Eduardo Baviera, CEO, Clínica Baviera, said: "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."

The management team also enjoyed working with 3i's representatives and wanted to partner with a firm that could provide several rounds of funding and a flexible exit horizon.

3i was attracted to investing in Baviera for a number of reasons. The company is the market leader in its sector with clinics throughout Spain. Its management has a clear value growth plan and has just launched a cosmetic surgery business line aimed at a sector that is growing at 20% per annum. The first cosmetic clinic opened in February 2005 and achieved breakeven in only two months.

Ambitious growth plans
Since completing the deal, 3i has been helping Baviera size up a number of acquisitions opportunities in Spain and Holland. It has also been working with the company to put together a strategy for the cosmetic surgery side of the business.

Maite Ballester, Partner, 3i, said: "We have been working with the board to set up broad corporate governance procedures for the new business. This will ensure that when Baviera rolls out the cosmetic surgery clinics it does so in a carefully structured manner, either organically or through acquisitions."