UMC announces the transaction of the year

CMU ANNOUNCES THE TRANSACTION OF THE YEAR
PRESS RELEASE

Bucharest – February 17, 2010

This month, Unirea Medical Center has finalized the process of selling a majority participation to the Advent International investment fund. This is the largest transaction from the market of private medical services from Romania.

CMU has begun the process of choosing an investor, 5 months ago, when 12 investors interested in the transaction entered in the race. Later on, 8 investors were selected, entering on the preliminary list. Finally, 2 of them entered on the short list and CMU has chosen the investor with the best expertise on the Romanian market, which also allows the largest development on the market of private medical services from Romania. Until the moment of finalizing the transaction, the shareholders of CMU were: the international private equity company 3i, which held 49% from the shares and the cardiologist Wargha Enayati, who held the majority package of 51%. In these three years, the turnover has increased from 5 million Euro to 16.5 million Eur.

Subsequent to the takeover of the package of 80% from the shares of CMU, the remaining package of 20% will be owned by the physician Wargha Enayati.

“We have chosen Advent International after a thoroughgoing process of selection among the best investors possible. And the responsibility has been huge. We have worked with specialists of our company who, starting from systematic researches, have known how to choose the most appropriate investment fund for CMU. The next years will mean for us the implementation of a development and extension plan without precedent, both for CMU and for the market of private medical services from Romania. The investment budget of 30 million Euro that we allocate will be, first of all, seen in the opening of the first Greenfield hospitalized specialized in surgery from Bucharest, a 12 million Euro investment, but also in a series of important projects we have planned for the period 2010-2011”, Wargha Enayati MD, General Manager of the Medical Center Unirea declared. “We are directly interested in extending on horizontal, mainly in Greenfield investments. The later investments will be financed from own sources, like before, but also from loans and funds put at disposal by our investors”, Wargha Enayati added.
In 2009, “Unirea” Medical Center recorded a 72% increase of turnover, reaching at a value of 69.5 mil RON, this being the most spectacular increase from the market of private medical services. The largest investment, of 5.5 million Eur, was in the „Regina Maria” Maternity, opened in December 2008. The increase record belongs to the surgical activity within CMU, about 1,000 operations in the “Arcul de Triumf” and “Regina Maria” hospitals. Thus, the hospital activities brought over 2.2 million Eur in 2009.

„15 years have passed, time during which I have tried to transmit moral values in business to the patients and employees of CMU. I believe this is the greatest of my achievements and I am glad that this perception has had impact on the company”, Wargha Enayati MD, General Manager of the Medical Center Unirea declared.

“We regard CMU as a solid platform for expansion at a national level in the fast-growing private medical services market. We will continue to support the development that the Executive Founder, Dr. Wargha Enayati and his management team have planned in order to drive growth across ambulatory and hospital units.”, Emma Popa-Radu, Managing Director at Advent International declares.