TPG, Carlyle still mulling Healthscope strategy

The two private firms have invited eight investment banks to pitch ideas.

By Brett Cole

Private equity leviathans Carlyle Group and TPG Capital have yet to decide on whether to sell Healthscope to another company, pursue an initial public offering or simply continue to own the hospital operator a little longer, according to people familiar with the matter.

Meetings are continuing at TPG and Carlyle about what to do with Healthscope, which the two US firms paid $2 billion for in 2010 using a mixture of cash and debt.

The firms have invited eight investment banks to make presentations on their recommendations for the health group.

Official appointments on roles for any of the eight investment banks have yet to be made.

The banks that have presented proposals are Bank of America Merrill Lynch, CIMB, Credit Suisse, Goldman Sachs, Deutsche Bank, Macquarie Group, Morgan Stanley and UBS.

Healthscope was formed in 1985 and is now Australia’s largest provider of integrated healthcare, according to its website. 

It has 4,500 inpatient beds across 33 hospitals, four mental health hospitals, four rehabilitation facilities, a pathology business, 60 medical centres and specialist skin clinics as well as a veterinary pathology unit.