Ramsay to enter UK mental health market with $1.4Bn Elysium takeover

Ramsay Health Care, an Australian healthcare giant, has unveiled plans to buy Elysium Healthcare, a leading mental health service provider in UK, for $1.4 billion.

Ramsay is optimistic that the recent acquisition will offer it a smoother entry into the UK mental health services market as a leading player with greater potential for growth within a sector which displays an estimated worth of £15 billion (AUD$28.1 billion).

Apparently, the takeover will be backed financially by the enlisted debt facilities of Ramsay and will provide single digit earnings per share accretion in FY23.

Craig McNally, CEO and Managing Director of Ramsay, quoted that Elysium takeover will introduce its patients pathways in UK at a time when there is a skyrocketing patient need for mental health support and services catering to neurological issues.

Mr. McNally mentioned that amalgamating Elysium’s expertise with Ramsay’s existing mental health facilities as well as clinicians in France, Australia and Sweden will help enhance improvement of patient outcomes throughout the global mental health activities of the latter.

Imperative to note that both Ramsay and Elysium have been fully committed to high-quality care, clinical excellence and patient safety and are centered around the same focal point of caring for the associated people and partners which the parties will continue to garner after the acquisition.

Initially established with 22 hospitals back in 2016, Elysium oversees hospitals and complex care facilities for people with mental health conditions.

The mental health provider has since then expanded organically via acquisitions to 72 operational sites with nearly 6,000 employees and 2,000 beds and hence emerging as a leading player in UK’s independent mental health space.

Reportedly, with five years of successive growth trends, Elysium displayed unaudited revenue of £349 million and reported EBITDAR of £65 million over the 12-month period ended June 2021.

Incorporating Elysium’s expertise will help Ramsay enhance its brand and quality reputation among patients, doctors and payers in the UK market.

Source Credits: https://www.businessnewsaustralia.com//articles/ramsay-health-care-to-acquire-uk-mental-health-services-provider-for--1-4-billion.html