Turkey’s biggest hospital chain sold to private equity firm

ISTANBUL

Medical Park Group has 18 hospitals in turkey, with approximately 11,000 employees. Private equity firm Turkven bought the majority stake at the group.

The majority stake in Turkey’s biggest hospital chain, Medical Park, has been sold to private equity firm Turkven following three months of talks.

Carlyle Group announced yesterday in a written statement that it has entered into a definitive agreement to sell its 40 percent stake in Medical Park, a Turkish healthcare provider, to funds advised by Turkven. The other shareholders, Sancak Group and Usta Group, have also agreed to partially sell their holdings alongside The Carlyle Group, amounting to a majority sale.

The transaction is subject to regulatory approvals and other customary closing conditions, the group said.

Commenting on the sale, Can Deldağ, Co-Head of Carlyle Middle East & North Africa (MENA), said, the group’s four-year partnership with Medical Park had been a great success for investors and healthcare consumers.

“In this time Medical Park doubled its turnover and increased market share. We have enjoyed working with the talented management team, and wish them continued success with their new partners,” he said. “Medical Park is one of a number of investments Carlyle has made in Turkey since 2007, and we remain committed to both the country and the region.”

 Speaking on the sale, Muharrem Usta, Chairman of the Board of Medical Park Group, said the new partnership represented a new era for Medical Park Group.

“Medical Park Group has contributed greatly to the spread of high standards of clinical care, while increasing access to quality healthcare in Turkey,” Usta said. “We thank The Carlyle Group for its contributions to this success story and hope to become a global healthcare brand in the coming years together with our new partners.”

Usta, the founder of the Medical Park Group, had sold a 30 percent share to the Sancak Family in 2006. In the following three years, the group increased its number of hospitals to 13 and reached a capacity of 2,000 beds. At the end of 2009, 40 percent of the Medical Park Group was sold to Carlyle Group.

Medical Park has since doubled its turnover and increased the number of hospitals from 13 to 18, with approximately 11,000 employees in Turkey.