Virgin moves into healthcare

3rd Mar 2010 09:32

Richard Branson’s Virgin Group grew another tentacle Wednesday by entering the healthcare business through the acquisition of the medical services assets of Assura Group.Virgin has set up a new company, Virgin Healthcare, to acquire Assura Medical Limited. Virgin will pay £4m cash and will give Assura a 24.9% equity stake in Virgin Healthcare in return as consideration for the acquisition. Assura will also receive a loan note with a face value of £4m under the terms of the deal.‘Healthcare is a sector that the Virgin Group has been extremely interested in entering for some time but we have always said that the partner and the timing had to be right - with Assura we believe we have found the perfect partner,’ said Richard Branson, founder of the Virgin Group.‘Assura will preserve the upside to the business through its 25% stake, whilst focussing its activities on its profitable property and pharmacy businesses, capable of paying attractive dividends,’ said Assura’s chief executive, Richard Burrell, who will have a seat on the board of Virgin Healthcare.In the six months to 30 September 2009 Assura Medical made a loss before tax of £4.4m on turnover of £0.1m.As at 30 September 2009, the gross assets of Assura Medical were £7m up from £5.4m at the end of March.