DEG invests in Mexican healthcare services provider
Press Release from 2018-09-06 / DEG
DEG is co-Investor in a financing tranche led by Australis providing growth capital for Grupo Vitalmex.
The demand for medical procedures is rising in Mexico, due to high rates of chronic diseases including cardiovascular disease and diabetes. Suppliers of integrated healthcare services, such as Grupo Vitalmex, play a key role in meeting this demand. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, is investing 14 million USD in the company in order to finance further growth. DEG is co-investor in a larger financing tranche led by Australis Partners Fund L.P., an independent private equity firm which specialises in Latin America.
Growth capital for Grupo Vitalmex
Grupo Vitalmex, based in Mexico City, was set up in 1976 and now encompasses multiple subsidiaries in Mexico and abroad, including Gimmi GmbH in Baden-Württemberg (Germany), which develops, produces and markets medical devices for equipping operating theatres.
The range of services offered by Grupo Vitalmex includes the provision and maintenance of medical technology, such as heart-lung machines, as well as endoscopy and laparoscopy surgical equipment. In addition, the company provides the necessary staff to install, operate, and service the equipment, in addition to the inventory management of instruments and materials. This gives customers – primarily public hospitals – access to high-quality medical technology to enable them to expand productivity and carry out the required treatments at lower costs, such as minimally invasive procedures and cardiovascular operations.
At present Vitalmex employs about 940 staff. Additional jobs will result from this investment as the company uses the capital to expand its current business and its private sector services. Furthermore, the company generates local income: this includes wages and salaries, interest costs as well as income tax.
Improvement in Mexican healthcare provision
DEG and Australis are not only providing Vitalmex with capital to grow and to help improve healthcare provision in Mexico. As shareholders, they are also giving active support in helping the company implement international environmental, social and corporate governance standards.
Australis Partners is a Latin American regional private equity firm focused on the markets of Mexico, Chile, Colombia, and Peru. Australis has a focus on sectors that include businesses benefiting from growth of the emerging middle class.
DEG is committed to improving the provision of medical care in partner countries. To this end, DEG is financing, among other things, companies that produce medical technology or medicines as well as private hospitals.