Ramsay (ASX:RHC) posts $1.4b spree into U.K. mental health market

Ramsay Healthcare (ASX:RHC) has inked a deal to buy UK-based mental healthcare provider Elysium Healthcare for $1.4 billion from private equity firm BC Partners.

The healthcare giant said the acquisition is slated to provide a leg into the growing UK mental health hospital market at scale with opportunities for both organic and inorganic growth.

“This is an excellent opportunity for Ramsay to expand its successful health care services platform in the UK through the acquisition of an established and reputable business, with a strong track record of growth and a robust pipeline of development opportunities,” said Ramsay CEO Craig McNally.

“The acquisition of Elysium will expand Ramsay’s patient pathways into the £15bn UK mental health market at a time when more and more people are seeking support for mental health, learning difficulties and neurological issues.”

The acquisition will be funded through Ramsay’s existing debt facilities and is expected to complete during first quarter of 2022.

Shares in Ramsay Healthcare (ASX:RHC) are trading 0.9 per cent lower at $68.89.