IG4 Capital buys Andrade Gutierrez hospital stake

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Monday, July 23, 2018

Private equity firm IG4 Capital bought from Brazilian construction group Andrade Gutierrez a 51% stake in Concessionária Novo Metropolitano, the concessionaire that built and now provides non-clinical support services for the Celio de Castro hospital in Minas Gerais state capital Belo Horizonte.

Now, IG4 Capital is in talks to also buy the stakes of the two other shareholders, Gocil Serviços de Vigilância and Vivante, a person close to the operation, who declined to be named, told BNamericas.

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The hospital is a public-private partnership (PPP) between the concessionaire and the city of Belo Horizonte, which, together with antitrust regulator CADE, still must greenlight the deal. The value of the transaction has yet to be announced.

Concessionária Novo Metropolitano posted annual revenue of 100mn reais (US$26.3mn).

When it was signed in 2012, the 20-year PPP contract, was worth 1.04bn reais and the concessionaire was planning to invest some 346mn reais, of which 22mn reais have already materialized.

The hospital started operation in 2015 and can attend 460 patients.

Andrade Gutierrez is trying to sell Brazilian assets to pay its debts. The conglomerate, like many others, is involved in the Lava Jato anticorruption probe and has therefore experienced a drastic fall in revenues due to its tarnished image.