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Business Observer Friday, Dec. 13, 2019 1 month ago

Australian company buys health care firm, plans $300M investment

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Fort Myers-based  21st Century Oncology is less than two years removed from emerging from Chapter 11 bankruptcy.

FORT MYERS — Australian cancer treatment company GenesisCare is making a big entry into the United States, by acquiring Fort Myers-based 21st Century Oncology.

GenesisCare officials say the deal, to combine one of the largest cancer treatment firms in Australia and Europe with one of the largest in the United States, in 21st Century, will benefit from massive economies of scale. For 21st Century Oncology, less than two years removed from emerging from Chapter 11 bankruptcy, the deal is a major victory. A group of hedge funds and private equity firms took over ownership of the firm post-bankruptcy, after 21st Century had reduced more than half of its $1.1 billion in debt.  

Financial terms of the deal weren’t disclosed in the statement released Dec. 12. Australian newspaper Financial Review reports GenesisCare paid $1.5 billion for 21st Century, which has 124 radiation oncology treatment centers and 170 clinical offices. 21st Century’s leadership will remain in place after the deal, according to the statement.

“We can achieve much more together than we can apart, and are proud to be bringing together 21st Century Oncology’s leading network of integrated cancer care physicians and GenesisCare’s highly experienced clinical specialists,” GenesisCare Founder and CEO Dan Collins says in the release. “Together, our goal is to increase patient access to high quality cancer care in communities across the U.S.”

GenesisCare plans to invest an additional $300 million in the U.S. over the next three years, the release states. The investment is targeted toward an expansion of treatment options for patients, including installation of state-of-the-art equipment and an expanded clinical footprint. Alexandria, Australia-based GenesisCare was founded in 2004, and has since grown from one cancer treatment clinic to 70 spread across Australia, the U.K. and Spain. The firm also operates cardiology and sleep services centers, and has some 3,000 employees who see more than 160,000 people a year.

“We are excited to collaborate with 21st Century Oncology to expand our reach in a significant new market for GenesisCare and bring U.S. patients the benefits of one of the largest, high quality cancer care networks in the world,” Collins says in the statement.

21st Century Oncology CEO Kim Commins-Tzoumakas, who first joined the firm while in bankruptcy as a legal advisor, says GenesisCare will help 21st Century “grow and improve the premier integrated cancer care network we have built in the United States.”

Adds Commins-Tzoumakas: “We are confident that we have found that partner in GenesisCare to bring together the right resources, world-class medical professionals and the innovative technology required to provide the best medical care and advancements to our patients and those who support them.”

The sale, subject to customary regulatory reviews, is expected to close by mid-2020.

(This headline of this story was updated to reflect the correct amount of GenesisCare's investment in the U.S.) 

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