Amil and Dasa, two prominent health sector companies in Brazil, have announced their union to form a new hospital-based enterprise, making it the 2nd biggest independent player in the industry after the Rede D’Or. This strategic consolidation strengthens the value proposition of Amil’s health plans and aids Dasa in the critical process of de-risking its business portfolio. The new company will dominate markets in Rio, São Paulo, and Brasília.
The union marks the first merger and acquisition activity for José Seripieri Filho, also known as Junior, since his December purchase of Amil, a deal that reached 11 billion Brazilian reais in enterprise value.
As part of the transaction, Amil is contributing 11 hospitals to the joint venture – including illustrious entities such as the Samaritano Higienópolis and the Samaritano Paulista – while Dasa will contribute 14 hospitals, with the notable ones being Nove de Julho and Leforte.
The newly formed company will hold an independent operation with a 50-50 control by Dasa shareholders and Amil stakeholders, neither consolidating the JV into their balance sheets. The objective of the shareholders is to open the company for an Initial Public Offering when the window comes opportune.
Future CEO of the new venture, Lício Cintra, who currently leads Dasa, along with Dulce Pugliesi, Amil’s founder, will chair the new company. The governing board will consist of nine members – three from Amil, three from Dasa, and three independents.
Highlighting the financial restructuring of the new establishment, Dasa also confirmed the transfer of 3.85 billion Brazilian reais from its gross debt amounting to 12 billion reais into the new company. Together with the 1.5 billion in freshly raised capital from the Bueno family, Dasa’s leverage drops immediate to 3x EBITDA, compared to 4.2x at the first quarter’s closing.
The company will operate 25 hospitals with a bed capacity of 4,400. The pro forma net revenue last year amounted to 9.9 billion Brazilian reais, accounting for 5.7 billion from Dasa’s hospitals and 4.2 billion from Amil’s medical institutions.
Amil, with its substantial base of 3 million beneficiaries, has been incurring financial losses for years, resulting in the UnitedHealth Group’s sell-off of the business. In 2023, Amil suffered a net loss of 4 billion Brazilian reais.
As well, Dasa concluded last year at a loss, tabulating 1.1 billion Brazilian reais in the red.
Authored by Geraldo Samor and Pedro Arbex.
