The Firm is representing New Frontier Corporation (NYSE: NFC) in its announced definitive agreement to acquire United Family Healthcare (“UFH”) from its existing shareholders, including affiliates of TPG and Fosun Pharma. Existing management of UFH and Fosun Pharma will roll a portion of their ownership in UFH and together are expected to own an aggregate of approximately 12% of the combined company at closing.
UFH is a leading private healthcare provider offering comprehensive premium healthcare services in China through the operations of its United Family Hospitals and Clinics, a network of private hospitals and affiliated ambulatory clinics. UFH currently has nine hospitals and in total over 700 licensed beds in operation or under construction in all four first tier cities and selected second tier cities. With an anticipated initial enterprise value of $1.44 billion, the new company will operate under the name of New Frontier Health Corporation with the mission to deliver high quality and comprehensive healthcare services across China, and to continue to grow through organic expansion and strategic acquisitions.
NFC is a public investment company formed by New Frontier Public Holding Ltd., an affiliate of New Frontier Group, for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. New Frontier Group is a China-focused investment group that invests in, builds and operates diversified businesses in the Chinese new economy sectors.
The Simpson Thacher team includes Patrick Naughton, Yang Wang, Lupeng (Amy) Liu, Jie Min and Kate Duan (M&A); Sarah Katz and Sarah Julian Duffy (Tax); and Larry Moss and Caitlin Lucey (Executive Compensation and Employee Benefits). Summer Associate Wenqing Zhao provided valuable assistance.