Establishing a new standard for the health sector in Europe

: study of an acquisition by Ramsay Générale de Santé of Humana AB

Abstract

Healthcare is central to the world as we know. As the world and population evolve, new challenges gain shape. This principle applies to the health sector as well, with ageing population, increasing chronic diseases and the rise of mental health. Therefore, this dissertation aims to study, as of December 31st 2023, how Ramsay Générale de Santé, a leading private comprehensive health French company can acquire Humana AB, a private Swedish welfare player. For that, Discounted Cash Flow and Trading and Transaction Multiples were used to obtain the value for both firms and then assess whether this acquisition would create value. The deal, projects that Ramsay would acquire Humana for c. € 621,19M, implying a premium of 75% over its share price of € 2,45 at December 29th 2023. This acquisition would rely on Ramsay using a mix of cash on hand and take over Humana´s existing debt, resulting in an approximated split of 35%/65%, respectively. The synergies from this transaction are mainly driven by Ramsay being able to offer an even more comprehensive care offering, achievement of economies of scale, Humana having better resources to offer a both more specialized and digital care, while Ramsay having a strong track record of integrating strategic investments. With the previous context, the deal would preliminarily result in synergies of € 190,2M, almost 3% of both firms combined without synergies. With the aforementioned financing mix, this deal would offer an average accretion of 25,7% to Ramsay.

Date of Award	5 May 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	António Borges de Assunção (Supervisor)