Covenant Healthcare ("Covenant"), backed by Phoenix Equity Partners ("Phoenix") and Bank of Scotland Corporate Banking, has made its second major acquisition in four months. Covenant is purchasing Transform Medical Group (“Transform”), recognised as the largest private cosmetic/plastic surgery business in the UK with a 10% market share. Transform was advised by Altium Capital Limited.
Covenant, through the Abbey Hospitals Group (“Abbey”), currently owns and operates six private hospitals across the UK providing a full range of acute medical services, including cosmetic/plastic surgery. Through this acquisition, Covenant will create extensive synergies between the existing Abbey hospitals and the Transform medical clinics. Covenant’s management team will achieve this by enhancing the existing clinical audit and quality assurance programmes; further developing the rigorous consultation process; adding to the high quality surgery facilities; and increasing the emphasis and focus on medically-led, non-surgical treatments.
Transform was founded in 1975, when cosmetic/plastic surgery was still a relatively new market. Cosmetic/plastic surgery has since grown at approximately 9% per annum to become a market worth £200 million a year. Transform has two hospitals and twelve clinics nationwide and employs 185 people. It offers a large variety of procedures to both men and women, including medically administered non-surgical treatments such as Botox and collagen injections and surgical treatments such as face-lifts, liposuction and breast augmentation.
Following the acquisition, Dr Magdy Ishak and the Covenant management team will take on overall responsibility for the management of Transform. Dr Ishak has an impressive track record in both medicine and management with 30 years in the medical profession. Covenant will work closely with the existing management team to develop the future business of Transform with emphasis on quality and transparency.
Dr Ishak said: "Cosmetic/plastic surgery is a rapidly growing and exciting branch of medicine, which historically was exclusive only to few but is now accessible to many. I am extremely pleased to be part of the ongoing development of Transform as this acquisition fits in well with our development programme for Covenant. Covenant and the Transform management team will endeavour to ensure Transform, through the implementation of rigorous medical processes and best practices, is the number one choice for patients seeking cosmetic/plastic surgery."
James Thomas, a Managing Partner of Phoenix and non-executive Chairman of Covenant commented: “We are delighted to be backing Dr Ishak and his team in Covenant’s second acquisition in four months. Cosmetic/plastic surgery is an industry set for further growth and we are confident that Transform will thrive under his guidance.”