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Highlander Partners Announces the Sale of MEDI-Systems to ORPEA

Warsaw, January 5, 2016 – Highlander Partners, a US, middle-market private equity firm, today announced the sale of MEDI-system to the Paris Euronext listed ORPEA, a leading European player in long-term, post-acute and psychiatric care services. For the last four years, MEDI-system, Poland’s number one private dependency care provider, was a Highlander Partners’ investment. ORPEA has acquired 90% of the shares of MEDI-system, with the remaining 10% retained by Dr Marcin Zawadzki, the founder of MEDI-system and its CEO for many years.

MEDI-system is the Polish market leader in long-term care. Founded in 2001 by Dr Marcin Zawadzki, the company has developed a unique network of modern care facilities in the country, that covers a variety of dependency care areas, including nursing homes and post-acute care, as well as rehabilitation clinics. MEDI-system has become part of ORPEA’s European network, as it fully meets ORPEA’s acquisition criteria, including an excellent reputation for quality and innovation, large and modern facilities, urban locations, and a real estate policy based on ownership. Additionally, ORPEA appreciates that MEDI-system is a well-organized and profitable company, its revenue in 2015 reached 10 million euros.

Dr Marcin Zawadzki, Chairman and founder of MEDI-system, stated: “We are very pleased with ORPEA’s commitment, which forms part of an entrepreneurial and long-term approach. ORPEA offers MEDI-system the opportunity to further quicken its growth, while also ensuring excellent standards of care for our patients and residents. ORPEA’s financial capacity and expertise, with over 25 years’ experience in the industry, mean that it is able to offer strong prospects for all MEDI-system employees.”

Prior to ORPEA’s acquisition MEDI‐system was 50% owned by its founder and 50% by a private equity investor Highlander Partners. ORPEA has acquired 90% of the company, with the founder keeping 10% of share capital. By investing in MEDI-system, OPREA has gained access to an attractive, fast-growing market and the ability to replicate in Poland a business model that has proven itself in other European markets. To meet the strong demand for MEDI-system’s services, ORPEA plans to increase the number of clinics in Poland through acquisitions and greenfield projects.

Yves Le Masne, ORPEA’s Chief Executive Officer, commented: “Our robust pace of international expansion continues at the start of 2016 with this acquisition of Poland’s number one nursing home operator. As in other countries, ORPEA has decided to acquire a high quality platform benefiting from a very competent and experienced management team and staff. Furthermore, unlike most of our recent acquisitions, MEDI-system’s real estate ownership strategy also offers a rare and particularly attractive opportunity for ORPEA. To implement its expansion strategy, ORPEA will provide MEDI-system with its financial capacity, know-how in the construction and redevelopment of care homes and its expertise in centralisation. Poland represents a very significant source of growth for the Group and MEDI-system is now ORPEA’s tenth development platform.”

Dawid Walendowski, Managing Partner of Highlander Partners, which has exited the investment, concluded: “We are happy we could have contributed to the creation of one of the largest private medical companies in Poland and bring it into the European market.”

About MEDI-system
MEDI-system offers patients over 700 places in 7 modern facilities in Warsaw, Central Poland and Chorzów, Southern Poland. The centers specialize in neurological, orthopedic and systemic rehabilitation, as well as medical care and treatment services. Patients in the care of the company also include those suffering from dementia as a result of Alzheimer’s disease, Parkinson’s disease, Pick’s disease, Huntington’s disease, neuroborreliosis and other related conditions. MEDI-system also provides services to people who have left the hospital after an illness or medical procedure, but who are not ready to function independently. The health and safety of patients is monitored by an over 500-strong team of physiotherapists and nurses, including physicians, psychologists, therapists, and carers, as well as support and administrative personnel. MEDI-system centers provide medical care in the rehabilitation wards, as well as in the residential medical care facilities, where stays are financed by the Polish National Health Fund or by the patients themselves. Up until now, over 10,000 patients have used the services of this company, which has the largest medical care and treatment network in Poland.

Founded in 1989, and listed on Euronext Paris since April 2002, ORPEA is a European leader in integrated long-term care and post-acute care. The Group has a unique network of 697 healthcare facilities, with 68,691 beds (10,439 of them under refurbishment or construction), including more than 32,700 beds in France at more than 350 facilities and close to 36,000 beds in the rest of Europe (Germany, Austria, Belgium, Spain, Italy, Czech Republic and Switzerland) at 343 facilities.

About Highlander Partners
Highlander Partners is a $1 billion US private equity firm, specializing in long-term direct investments in midsize, innovative businesses from the manufacturing and service sectors, in North America and Central Europe. To date, Highlander Partners has invested in 5 companies in Poland. MEDI-system is the second investment in Central Europe that Highlander Partners has successfully sold to a major European player in its own industry, allowing the company to expand further.

Additional information
Dawid Walendowski, Managing Partner, Highlander Partners, dwalendowski@highlander-partners.com, phone +48 22 445 03 40