10:48 10.04.2019

Horizon Capital's EEGF III becomes minority shareholder in Dobrobut medical chain

4 min read
Horizon Capital's EEGF III becomes minority shareholder in Dobrobut medical chain

Emerging Europe Growth Fund III, LP (EEGF III) of Horizon Capital has acquired a minority stake in a leading private medical chain in Kyiv city and region – Dobrobut, the company reported on Wednesday.

"Our plans require investment and expertise. Horizon Capital's capital, knowledge and experience are pivotal in supporting our ambitious strategic plans," Oleg Kalashnikov, CEO of Dobrobut, said.

According to him, in the nearest future Dobrobut will open another medical facility in Kyiv, 10,000 sq m, which will offer top-notch surgery, oncology and cardiology services.

Horizon Capital's Founding Partner and CEO Lenna Koszarny said that Horizon Capital's entry into this strategic sector, together with the backing of our global institutional investors, will play a significant role in the development of healthcare in Ukraine, as it brings capital, transparency, world-class equipment and best practices to this industry.

The participants in the transaction do not disclose its terms, however, Kalashnikov said that "it is not about selling part of the business, this deal is about increasing capital and supporting growth."

"We have ambitious plans to further develop the company, including opening new clinics, expanding the scope of medical services offered and mastering new skills," he said.

At the end of March, the Antimonopoly Committee of Ukraine reported that Cypriot Dealbeta Investments Limited, created by Emerging Europe Growth Fund III (EEGF III) managed by Horizon Capital, jointly with an individual-citizen of Ukraine, plan to acquire a controlling stake in Cypriot Satumco Limited, the owner of Dobrobut.

In January 2019, The Antimonopoly Committee of Ukraine began probing into the acquisition by Cypriot-based Satumco Limited, the owner of Kyiv's largest private medical chain Dobrobut, of the Boris Clinic, one of the oldest private clinics in Kyiv.

The Dobrobut Medical Center was established in 2001 and previously included branches in Donetsk and Yalta, but now its assets are located in Kyiv and it grew to a large chain. In particular, it currently includes an emergency station, children's clinics on the right and left banks of Kyiv, clinics for adults on the right and left banks, a hospital for adults and children, pediatric and adult surgery departments, a medical diagnostic center, the Dobrobut Oncology Center, as well as the center of clinical neurology, neurorehabilitation and rehabilitation medicine.

In January 2018, a group of investors from the Concorde Capital investment company and shareholder in the Luxoptica chain of optical stores Oleh Kalashnikov acquired 80% of the Dobrobut chain from UBG (both based in Kyiv). The owner of the UBG corporation was MP Ruslan Demchak (Bloc of Petro Poroshenko parliamentary faction), who retained a 20% stake in the chain.

Currently, according to the public register, Satumco Limited owns 99% in many companies of the chain (Dobrobut Emergency Aid LLC which revenue in 2017 was UAH 38.5 million, Dobrobut Polyclinic Center with UAH 347.8 million, Dobrobut Statsionar Center (in-patient facility) with UAH 48.9 million, Dobrobut Medical Center for Children with UAH 73.6 million, Dobrobut Dytynstvo (Childhood) Center with UAH 22.2 million) and its beneficiaries are owner and head of Concorde Capital Ihor Mazepa and Luxoptica shareholder Oleg Kalashnikov.

In January 2019, Horizon Capital announced that Horizon Capital created the largest equity fund in Ukraine over the past 10 years: EEGF III with $200 million.

Horizon Capital was established in 2006. It manages private equity funds Western NIS Enterprise Fund (WNISEF, established in 1994 with a seed capital of $150 million), Emerging Europe Growth Fund, L.P. (EEGF, established in 2006 with a seed capital of $132 million) and EEGF II (EEGF, established in 2008 with $370 million seed capital). The money of these funds is invested in projects in Ukraine, Moldova, and Belarus.