Market News

Med Life S.A. - M

The increase of the existing facilities by 40 million euros

Release Date: 5/4/2021 10:20:21 AM

IRIS Code: A72F7


MedLife signs a syndicated loan amounting to approximately 143 million euros: "The new funds will be allocated to strengthen the position at national level, increase the presence at regional level and increase research projects"


·         M&A and the expansion of the medical infrastructure remain a priority, MedLife having 3-4 advanced discussions at national level and 1-2 at regional level.

·         The company will consolidate its efforts in research activities, and will invest 3-5 million in one of the most modern laboratories with a high degree of biosecurity in the field of virology, genetics and molecular biology in Romania.

·         The new funds will also be used for the development of regional hospitals, by expanding the existing units, the related infrastructure in the area of ​​oncology and post-COVID programs.

·         MedLife ended 2020 with pro-forma consolidated sales of 251 million euros, being one of the largest private medical providers in the region.

·         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 figures budgeted do not include recent acquisitions.

·         MedLife will continue to support authorities and citizens by monitoring the pandemic.


Bucharest, May 04, 2021: MedLife Medical System, the leader of the private medical services market in Romania, signs today the increase of the existing facilities by 40 million euros by signing a syndicated loan in the total amount of approximately 143 million euros. To this increase will be added, as appropriate, other important liquidities of the company.


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


The new funds will be dedicated to consolidating and expanding the group at national level, through the development of regional hospitals, where the patient will benefit from a 360-degree approach both in terms of the complexity of the medical act and the quality of complementary services. The expansion of the medical infrastructure and the M&A program are also a priority this year, and moreover, the company will continue intensely its research efforts, aiming to intensify them through new investments during this year.


"We have big plans for the coming period and, even if we are very cautious and connected to the way the health crisis evolves, this does not stop us from daring, innovating and building new roads where others never have thought to go. We will continue the research initiatives initiated since the beginning of last year, approaches that not only gave us an important role in society, but also positioned us as a regional watchdog in monitoring the pandemic. As we have already announced a month ago, we allocated 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 project being quite advanced. The new laboratory will be inaugurated in Bucharest and will become the most modern research laboratory in the area of ​​genetics, virology and molecular biology in Romania. At the same time, we maintain as a priority the M&A program but also the consolidation of the medical infrastructure across the country so that the patient can have swift access to medical services everywhere" said Mihai Marcu, President and CEO of MedLife Group.


"Quality medical services are a top necessity for  our society, and private medical services have proven their complementary role during the pandemic. MedLife decision to continue its development plans gives us confidence in a better future for the health sector and also for the Romanian business sector as a whole.  BCR is an active supporter of the Romanian business environment and we are glad to  support further the development of MedLife group. Hopefully, more entrepreneurs will follow this example, not just from the medical sector. If last year was one of accommodation to the new reality, we believe this year will be dedicated to investments", said Oana Macoveiciuc, Head of Consumer Products and Services BCR.


According to company representatives, important emphasis will be also placed on the development of programs and projects in a pandemic context, projects related to prevention, oncology and radiotherapy, tech and digitalization, the main objective being the needs of the patient in 2021, that had or not COVID-19 infection, who takes care of his health and who wants to solve his needs efficiently, quickly and safely.


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 direction of adapting services to the current context. “We make strategic plans, but we will also calibrate the investments depending on the evolution of the pandemic", said Mihai Marcu, President and CEO of MedLife Group.


MedLife ended 2020 with pro-forma consolidated sales at group level of 251 million euros, up 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 acquisitions announced at the end of 2020, which will be added as the completion procedures are finalised.


About MedLife Medical System:


MedLife Medical System started 26 years ago, has developed healthily and has become the largest provider of private medical services in Romania. Romanian entrepreneurs, who founded this company, invested and got involved to change the Romanian health system, believed in innovation and dared to aim as high as possible, to offer Romanian patients qualitative services, professionalism, care and respect for their needs.


 The company operates the largest network of clinics, one of the largest networks of medical laboratories, general and specialized hospitals and has the largest corporate clients base for Health Prevention Packages in the country. It is also one of the largest private healthcare providers in Central and Eastern Europe in terms of sales.


MedLife Group has a history of success in terms of both organic growth and by acquisitions. Strong and experienced management team, composed 100% of Romanians, was able to create and manage these growth opportunities, gaining valuable knowledge and experience, which allows to find the best way to successfully continue the expansion.


 Being a Romanian company with a tradition, MedLife chose to be listed on the Romanian Stock Exchange, being a model for listings on the local capital market. It has opened up new horizons, and through the corporate governance it has implemented, has inspired other local companies to embark on this path and help develop the Romanian capital and economy. The shares issued by MedLife SA are admitted to trading on the regulated spot market administered by the Bucharest Stock Exchange, Premium Category, with the trading symbol ″ M ″.


During the pandemic, MedLife managed to play a key role in society and gain a detached leadership status in pandemic monitoring through active involvement in research activities.


 The company continues to invest in projects in technology and infrastructure, with impact on the local community. It creates jobs and develops an ecosystem that contributes to the development and maintenance of a healthy Romania.




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