Bure Health Care signs definitive agreement to acquire hospitals in Britain and Switzerland

Bure Health Care signs definitive agreement to acquire hospitals in Britain and Switzerland Bure Health Care is strengthening its position in the health care sector in Europe through the acquisition of 100 % of the shares in Charter Medical of England Ltd in the UK and the SA de la Mètairie in Switzerland, both of which specialise in psychiatry. These hospitals have joint annual sales of approximately SEK 260 M. The seller is Magellan Health Services, a US health care company. Following the acquisition, Bure Health Care will have annual sales of nearly SEK 3 billion, and the transaction will make a positive contribution to earnings during 1999. "This acquisition strengthens our health care operations, both in international and in professional terms", says Per Båtelson, CEO of Bure Health Care. "Charter and La Mètairie have the psychiatric expertise we are looking for as regards advanced managed care concepts and consistent measurement methods to monitor quality. This will provide the basis for growth in other Northern European markets." The hospitals are located in London and Nyon near Geneva. They are both managed from London by Patricia Hodgkinson, CEO. The London operation is the largest, consisting of four units, all centrally located. The Charter hospital group is the third largest private operator in its sector in the UK, with 140 beds. It treats patients with all types of psychiatric disorders, offering both in-patient and out-patient facilities. La Mètairie in Switzerland specialises in in-patient treatment and has 75 beds. There is considerable demand for the services provided by these hospitals, and this is expected to increase over the coming years. Operations in the UK are 50 % financed by the National Health Service (NHS), which means that half of the care services provided are produced on behalf of public-sector Authorities. Approximately 30 % are financed by insurance companies, and about 20 % from private sources. In Switzerland, services are mainly financed by the insurance schemes. "The basis of our business concept and for growth in Scandinavia is to offer publicly financed health services. In other parts of Europe, however, insurance-financed services are much more common than in our domestic market in Scandinavia, which gives us an opportunity to also develop our concepts in this environment", Per Båtelson says. Britain and Switzerland are both high priority markets for Bure Health Care. In many ways, Britain is at the forefront of active health care policies, with new solutions and strong patient influence. Britain also has a reputation as a leading research centre in the psychiatric field. Psychiatry is a large and clearly focused discipline in the health care sector, while psychiatric capacity is inadequate in most European countries. "We have taken a strong position in the rapidly expanding privately-produced health care market in Sweden and Norway. Now we will become a major and attractive operator in a European perspective. The hospitals which we have acquired will continue to expand and, at the same time, they will be contributing to the establishment of psychiatric operations in other high priority markets", Per Båtelson says. Operations outside Sweden currently represent 35 % of Bure Health Care's sales. Specialist care, which is one of the five business sectors, will have annual sales of SEK 850 M, following the current acquisition of Charter and La Mètairie. Consolidation will be made as of April 1, 1999. Bure Health Care is part of Investment AB Bure, and operates in the following areas: Specialist Care, Geriatric Care, Occupational Health Care, Diagnostics and Materials Supply. Bure Health Care has annual sales of approximately SEK 3 billion and about 3,400 employees. Operations are conducted in Sweden, Norway, Denmark, Great Britain, Switzerland and Poland. Gothenburg, April 6, 1999 Investment AB Bure (publ) For further information, please contact Saila Horttanainen, Corporate Communications, Bure Health Care Tel: +46-31-335 76 72 or +46-70-622 76 06 Knut Leman, Head of Corporate Communications, Investment AB Bure Tel: +46-31-335 76 75. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/04/06/19990406BIT00070/bit0001.doc http://www.bit.se/bitonline/1999/04/06/19990406BIT00070/bit0002.pdf