Luye Group Ltd. agreed to buy Healthe Care Australia Pty, the nation’s third-largest private hospital operator, for $688 million as the Chinese company hunts for expansion opportunities in the Asia-Pacific.
Luye is acquiring Healthe Care from private equity firm Archer Capital Pty and gaining a company that operates 17 hospitals with more than 1,800 beds across Australia, the companies said in a joint statement on Sunday. Luye has a significant stake in Hong Kong-listed drugmaker Luye Pharma Group Ltd., according to the statement.
The deal puts Luye in a position to take advantage of opportunities resulting from Australia’s recently signed free-trade agreement with China, according to the company. Foreign acquisitions of Australian companies have almost doubled this year.
“Healthe Care will provide us with a platform upon which we can build a world-class and highly successful healthcare services business, not only in Australia and China, but also in many other countries of Asia where we see development opportunities,” Luye Chairman Liu Dian Bo said in the statement.
Completion of the transaction is expected in the first quarter of 2016, according to the companies.