The city of Wiesbaden in Hesse, Germany issued a tender for the acquisition of a 49-%-share of the municipal Horst-Schmidt-Kliniken (HSK). More than ten out of twenty interested investors seem to be seriously interested in purchasing this minority share.
The HSK-clinics facilitate about 960 inpatient beds and employ approximately 2,500 people. The annual tunrover in 2010 amounted to 234 million Euro. The Eschborn-based law firm Luther has been mandated to find a buyer.
The HSK-stakeholders are not only looking for a high financial offer but also want to select a bidder, which would be a strategic partner for the HSK-clinics and help them to become more competitive. The final decision will be made by the municipal parliament.
The HSK-clinics had a deficit of 7 million Euros in 2009 and a total debt of 54 million Euros. Given an average market multiple for M&A transactions in the German hospital market, the 49%-shares would cost a bit less than 50 million Euros (100,000 Euros per bed).
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