Azevedo Sette assisted Grupo Promed in the sale of the company to Hapvida

Azevedo Sette assisted Grupo Promed in the sale of the company to Hapvida

Fredrik Karlsson and Emily Darby 17 September 2020

Madrona Advogados has helped Brazilian health insurance company Hapvida buy local healthcare group Promed in a deal worth 1.5 billion reais (US$279 million).

Promed turned to Azevedo Sette Advogados. The deal was signed on 8 September.

The acquisition involves three hospitals, one short-term stay hospital and seven primary care clinics, all located in the state of Minas Gerais in eastern Brazil.

Hapvida will pay for the assets using a mix of cash, shares and the assumption of Promed’s debts, with each payment method constituting 500 million reais (US$93 million) of the deal’s total value.

Separate to the acquisition, Hapvida announced it had signed a lease agreement to operate the Sinhá Junqueira maternity and childrens hospital in the state of São Paulo. The company has agreed to invest some 11 million reais (US$2 million) to modernise the hospital.

Hapvida also signed a letter of intent to buy a 18,000-strong client portfolio from healthcare provider Samedh in the state of Goiânia, central Brazil. That deal is worth 20 million reais (US$3.7 million).

The Brazilian insurer made several investments to expand its business last year. Hapvida bought local counterpart Grupo América for US$110 million in June, while it purchased another equivalent, Grupo São Francisco, for US$1.25 billion a month prior. Madrona helped Hapvida in both transactions.    

Counsel to Hapvida

Madrona Advogados

Partner José Luis Camargo Jr. and associates José Senedesi Neto, Gabriel Martins and João Henrique Schpallir

Counsel to Grupo Promed

Azevedo Sette Advogados

Partner Thiago Assumpção Henriques