Dasa and Amil, two Brazilian healthcare entities, have reached an agreement to merge their hospital operations, reported Reuters.
Each of the two groups will acquire half of hospital chain Impar, a Dasa company, which will also integrate Rede Americas hospitals owned by Amil.
This move will see Impar owning 25 hospitals and several oncology clinics, comprising approximately 4,400 hospital beds.
With a combined revenue of 9.9bn reais ($1.84bn) in 2023, the venture marks a significant consolidation in the Brazilian healthcare sector.
Additionally, the deal includes the transfer of 3.85bn reais of Dasa’s debt to the merged entity.
The transaction excludes some hospitals in Brazil’s northeast and awaits the clearance of Brazil’s antitrust authority, CADE.
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By GlobalDataWith over six decades of operation, Dasa has a network of hospitals, oncology clinics, and diagnostic centres in Brazil. It has hinted at the possibility of separating and listing its stake in Impar in the future.
The company’s CEO Licio Tavares Cintra will be at the helm as CEO of Impar, while Dulce Pugliese de Godoy Bueno has been appointed as the chair of the board.
The latest joint venture is rooted in a shared history between Dasa and Amil, with the Bueno family being Dasa’s controlling shareholder since 2013 and the founder of Amil in the 1970s.
In 2012, Amil was sold to UnitedHealth Group for around $5bn.
UnitedHealth recently divested Amil to Brazilian entrepreneur Jose Seripieri Filho, with the deal reportedly valued at around 2.5bn reais.
According to a Reuters report, the sale included Amil Insurance, Amil Integrated Care, Amil Dental and Americas Hospitals in Brazil.
UnitedHealth’s decision to offload Amil came after years of contemplation, as the company faced losses from individual health plans. The sale led to a $7bn charge for UnitedHealth, as stated in a filing to the Securities and Exchange Commission, primarily due to foreign currency translation losses.