MedLife to increase its existing facilities by 40 million Euro

MedLife, the leader of the private medical services market in Romania, announces the intention to increase its existing facilities by 40 million Euro by signing a new syndicated loan; discussions are already underway with the banks. Depending on the opportunities, other own important liquidities will be added to this increase, if needed.

The syndicate of banks which would sign the new syndicated loan is comprising the following lenders: Banca Comerciala Romana, as coordinator, mandated lead arranger, documentation agent, facility & security agent and lender, BRD Groupe Societe Generale, Banca Transilvania and Raiffeisen Bank as lead arrangers and lenders.

New funds will be dedicated to the consolidation and expansion of the group at national level, by developing medical units such as MedPark, where the patient would benefit from a full approach both in terms of the complexity of the medical act and the quality of related services. A major attention will be paid to the development of programs and projects in the pandemic context, projects related to prevention, oncology and medical radiotherapy, tech and digitization, the main objective being the needs of the patient in 2021, that was or not infected with COVID-19, who takes care of his health and who seeks to solve his medical needs in an efficient, quick and safe manner. Moreover, the company aims to continue the research activities, and to extend them through new investments.

“The research initiatives started since the beginning of last year, consistently and high conducted, have positioned MedLife as a regional pandemic watchdog, our team of specialists keeping informed in real time the authorities and the population about the SARS CoV 2 virus. These actions assured us an important role in society, assuming the moral responsibility to monitor the evolution of the pandemic. We have taken this role very seriously and that is why we aim to intensify our efforts in the research area. Regarding this, we have decided to invest between 3 and 5 million for the arrangement of a new biosafety III laboratory where we will work for the first time with live viruses. The land and part of the buildings have already been acquired, and the new unit being next to the group’s central laboratory. The new laboratory will be part of MedPark and will become the most modern research genetics laboratory, virology and molecular biology in Romania” said Mihai Marcu, President and CEO of MedLife Group.

At the same time, the group’s representatives announce that another targeted segment is the M&A program, both nationally and internationally, and the strengthening of country health infrastructure, where the patient can quickly access the medical services, from anywhere.

In addition to national investment and development plans, MedLife will continue to strengthen its main business segments, clinics, corporate, hospitals, laboratories, pharma and dentistry, with the main strategy of adapting services to the current needs of patients and clients in the portfolio.

MedLife Group ended 2020 with consolidated pro-forma sales at group level worth 251 million euros, increasing by 25.5% compared to the same period last year, being one of the largest players at regional level.

According to the company’s representatives, the figures budgeted for 2021 at consolidated level show 15% increase in sales, as well as a maintenance of current profitability (EBITDA margin) at group level. The budgeted figures do not include the M&A transactions announced at the end of 2020, which will be added as the closing procedures are completed.