Waterman Capital has today confirmed it has acquired 22% of the company which owns Auckland's Mercy and Ascot Hospitals.

Auckland-based Waterman Capital's shareholding in Healthcare Holdings Limited, the holding company which owns MercyAscot Hospital, has been acquired from Emerald Group.

MercyAscot Hospital is the largest private hospital operator in Auckland, with 19 operating theatres and over 250 beds across the city. It is a leader in cancer care, orthopedics, neurology and cardiology. The business also holds interests in a number of complementary joint ventures in the areas of cancer care, angiography, radiology, PET-CT scanning, endoscopy, laparoscopy and other general day surgery operations.

Additional assets within Healthcare Holdings include a majority interest in Kensington Hospital in Whangarei, and a minority interest in Boulcott Hospital in Lower Hutt.

New Zealand's ageing population has led to a major increase in healthcare expenditure in the last decade. The proportion of the population aged 65 years or older is estimated by Treasury to be 12%, but that group accounts for 40% of health expenditure. By 2050 the proportion of the population aged over 65 years is expected to be 24% with the share of total health spending increasing to 63%.

Executive director of Waterman Capital, Chris Marshall, says that the acquisition puts Waterman and its investors in a good position to benefit from these key demographic trends. Marshall will join the board of Healthcare Holdings.

"The key attraction for Waterman is the many opportunities for growth available to Healthcare Holdings. The business has a quality management team which has been together for some time with a clear mandate to execute on those opportunities."

The business recently invested in a leading edge Positron Emission Tomography - CT (PET-CT) scanning facility, which Marshall says is an example of showing leadership in the area of cancer care. PET-CT scanning enables the presence of cancers, and particularly their progress, to be assessed much more accurately than traditional diagnostic technologies.

Managing Director of Healthcare Holdings, Andrew Wong, welcomed Waterman as a cornerstone shareholder. "We look forward to working with Waterman. We have some exciting prospects ahead of us, they clearly understand these and are looking to support us through this next phase."

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About Healthcare Holdings

Established in 1997, Healthcare Holdings owns and operates the Mercy and Ascot hospitals in Auckland, holds a majority interest in the Kensington Hospital in Whangarei and is a minority shareholder in Boulcott Hospital in Lower Hutt.  The business also operates a number of joint ventures in the areas of angiography, radiology, PET CT scanning, endoscopy, laparoscopy and other day surgery procedures.

Additional information is available at www.mercyascot.co.nz

About Waterman Capital

Waterman Capital is a New Zealand owned and based private equity firm established by Matt Riley and Chris Marshall in 2004. It is focused on investing in and adding value to mid-market businesses in New Zealand.  Waterman Capital was the first manager appointed by the Guardians of the NZ Superannuation Fund for its Expansion Capital Strategy in 2010.

For more information visit www.waterman.co.nz.