Healthcare Australia on the block; 333 Capital mandated
Australia's largest recruiter for nurses and doctors, Healthcare Australia, is being prepared for sale.
Australia's largest recruiter for nurses and doctors, Healthcare Australia, is being prepared for sale.
Street Talk can reveal KordaMentha's M&A advisory arm, 333 Capital, has been hired to find a buyer for the business, with an auction to get underway early next year.
Healthcare Australia, which specialises in nursing and doctor placements but also recruits support and allied health workers, makes between $15 million and $20 million in earnings.
It is expected to fetch more than $150 million, based on recent transaction multiples for similar assets, with the field of buyers to be led by overseas players and private equity firms.
Healthcare Australia's owners, global alternative asset manager Ares Management and London-based private equity firm Toscafund Asset Management, will be hoping the white-hot labour market and demand for quality healthcare assets translates into a good price.
Logical acquirers include Dutch giant Randstad and Switzerland's Adecco. Japanese human resources company, Recruit Holdings, which acquired local rival Chandler Macleod in 2015, would also likely take a look.
Healthcare Australia is also no stranger to private equity ownership. The company was sold by CHAMP Private Equity to London-listed Healthcare Locums in late 2010, after which Ares and Toscafund bought out and privatised Healthcare Locums.
The slated auction comes as listed labour hire firm Programmed Maintenance is under a $778 million takeover offer from Japan's Persol, and amid a flurry of consolidation in the Australian services industry, with Downer EDI trying to secure full control of Spotless.