Bain Capital is buying Grupo Notre Dame Intermedica. The price is about $851 million, the Wall Street Journal reported.
Grupo Notre Dame, headquartered in Sao Paolo, provides health and dental insurance plans through subsidiaries Intermedica, Notre Dame, Interodonto and RH Vida. The Intermedica business provides primary care and preventative medicine in company-owned clinics and hospitals; Interodonto provides a dental plan; Notre Dame provides health insurance; and RH Vida provides occupational health services to large corporations.
"Private health care systems around the world continue to move toward an integrated payor-provider model as the best means of delivering high-quality, cost-effective health care," says Chris Gordon, Bain managing director. The deal contributes to Bain's plan to build up its Brazilian and Latin American presence.
The transaction requires approval from the Brazilian insurance regulator and antitrust authority.
Boston-based Bain has more than $70 billion in assets under management and has invested in 450-plus companies since it was founded in 1984. Bain has invested in roughly 50 health care companies, including Hospital Corporation of America, which received an investment from Bain in 2006, Warner Chilcott Ltd., a company Bain sold in 2013, and Quintiles, which the firm invested in in 2007.
The Affordable Care Act is prompting many companies to change their business models, which is spurring M&A. Recent deals include 3M Co.'s (NYSE: MMM) purchase of Treo Solutions, announced in February, and GSI Group Inc.'s (Nasdaq: GSIG) deal for Jadak Technologies Inc., also in February.
For more on the health care sector, see "ACA Reshuffles the Deck."