Orrick advised Deutsche Beteiligungs AG (DBAG) on its investment in two radiology practices in the state of North Rhine-Westphalia, Germany, which DBAG will merge into a group. Within the scope of a management buyout (MBO), DBAG and its DBAG Fund VII will acquire a majority interest in Radiologische Gemeinschaftspraxis Herne GbR and Ranova Überörtliche Gemeinschaftspraxis für Radiologie und Nuklearmedizin GbR and combine them into one entity. This is the first acquisition by DBAG Fund VII, a 1,010 million Euro fund that closed in September 2016.
The fund will acquire the interests held by a group of 18 physicians who managed and successfully developed the two group practices. All former shareholders will reinvest and own 44% of the new company. The transaction requires approval by the cartel authorities and other institutions. The purchase price is undisclosed.
The radiology practices operate 15 offices staffed by 87 physicians across various cities in western Germany’s Ruhr area. Last year, the practices achieved revenues totaling €54 million.
Deutsche Beteiligungs AG, a listed private equity company, initiates closed-end private equity funds and invests alongside the DBAG funds in well-positioned mid-sized companies with potential for development. DBAG focuses on industrial sectors in which Germany’s ‘Mittelstand’ is particularly strong on an international comparison.
DBAG Fund VII was advised by an Orrick team led by Munich based M&A and Private Equity partners Christoph Brenner, who has advised DBAG for a number of years, and Thomas Schmid. They were assisted by partners Stefan Schultes-Schnitzlein (Tax, Düsseldorf), Christian Schröder (IP/IT Data Privacy, Düsseldorf), André Zimmermann (Employment, Düsseldorf), counsel Felix Schäfer (Real Estate, Düsseldorf) and associates Andrea Köhler (M&A and Private Equity, Munich), Bernhard Schmaderer (M&A and Private Equity, Munich), Markus Schmid (M&A and Private Equity, Munich), and Sophie Ratzke (IP/IT Data Privacy, Düsseldorf).
The Life Sciences regulatory aspects of the deal were handled by a team from Düsseldorf-based Life Sciences boutique NOVACOS, led by partner Maria Heil.