Crédit Agricole Assurances and Ramsay Health Care form partnership in healthcare sector with joint buyout of Proclif clinics

January 11 2010

Crédit Agricole Assurances, the leader in bancassurance and a benchmark in health and long-term care insurance, and Ramsay Health Care, a company listed on the Sydney stock exchange that is a major operator in the private hospital sector with over one hundred facilities on three continents, finalised a long-term partnership agreement that aims to enhance the supply and quality of private hospital care in France.

Against this backdrop, Predica, Crédit Agricole Assurances’ personal insurance subsidiary, and Ramsay Health Care, entered into an agreement for the joint buyout of the group of private clinics operated by Proclif, which was previously controlled by the Duke Street fund.

Under the terms of the agreement, Ramsay Health Care and Predica will own 57 per cent and 43 per cent of Proclif, respectively. Ramsay Health Care will operate the Proclif clinics. Crédit Agricole Assurances and its subsidiary Predica will provide support for the group’s ambitious growth strategy.

This will give Proclif the strongest advantages for further expansion, with the backing of:

– a management team that has successfully carried out an active acquisition and restructuring policy;

– Ramsay Health Care’s expertise as an operator in the private hospital sector;

– Crédit Agricole Assurances’ commitment to healthcare insurance.

The completion of this deal is subject to certain conditions, primarily securing the required approvals from the competition authorities.

Christopher Rex, CEO of Ramsay Health Care, commented: “As part of its overall sector review, Ramsay looked at several opportunities in Europe. France is an attractive market for Ramsay, particularly owing to favourable demographic trends. With its base in the greater Paris area and the quality of its management, Proclif will serve as a solid platform for Ramsay’s expansion into the French market. Ramsay is very proud to be associated with a group such as Predica, which has widely recognised expertise in the field of healthcare.”

Bernard Michel, CEO of Crédit Agricole Assurances and Predica, said: “We are proud to partner Ramsay Health Care, a benchmark in the hospital sector. The company has an international presence and strong expertise in MCO. This partnership will strengthen Crédit Agricole Assurances’ presence in the field of healthcare and will give Proclif a new dimension. The partnership also demonstrates the quality of Proclif’s management and the platform’s potential. We are also delighted with our involvement in this venture with our partner, Duke Street.”

Bernard Lasry, Chairman of Proclif, said: “Proclif is now backed by two major and complementary shareholders who will support us in our aim to become a national player in the field of private hospitals.””

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CP CAA-Ramsay Health Care 11-01-2010 AN