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Amil, a competitor to Unimed, was sold for R$11 billion to businessman José Seripieri Filho and promises to become the largest health plan in the Brazilian market.
Unimed is widely recognized as one of the largest health plan companies in Brazil, but it is far from being the only giant in this highly competitive sector. There are major rivals competing fiercely for the market, and recently a historic merger caught attention. One of Unimed's biggest competitors, now strengthened by this merger, is positioned to become the largest health plan in the country. Check out the details of this strategic movement that promises to transform the health plan scenario in Brazil, redefining market forces and the options available to consumers.
Unimed's competitor is sold for R$11 billion
Generally, companies come together with the purpose of increasing influence in the field in which they operate. This is a common strategy and it usually works very well. There are large enterprises that simply took off after promoting a merger.
According to O Globo newspaper, in December last year, the Board of Directors of the American UnitedHealth Group approved the sale of Amil for businessman José Seripieri Filho, known as Júnior and who was the founder of Qualicorp. It turns out that this business was valued at R$ 11 billion, one of the largest in the country.
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The purchase of Unimed's competitor made Seripieri the official owner of Amil. According to information from the newspaper, the Americans would not be responsible for anything that happened at Amil. The new owner believes that he will be able to restructure the health care provider and will do everything he can to make it one of the most sought after by the public.
The business will make Amil return to the Top 1 in the health plan sector and shows that the company has the desire to become a big player in the segment again. This could be a problem for Unimed, which will have a fierce dispute with this sector giant.
Amil's sales process
Unimed's competitor in the health plan sector was also being contested, at the time, by businessman Nelson Tanure, from the operator Alliança, and by the American private equity fund Bain Capital, which was once a relevant shareholder in NotreDame Intermédica in the country.
In the largest merger and acquisition transaction carried out in the country between a single individual and a company, Junior will pay R$2 billion to UHG and assume liabilities of around R$9 billion. The total amount, however, may be higher due to possible disputes.
This was the strategy of Junior's offer, which takes on the business behind closed doors even with the risk of facing possible higher expenses in the future. On the other hand, this would also have been the reason why Bain's Americans left the race. If they stayed, the negotiations would extend into this year, something that UHG wanted to avoid. When contacted, Amil responded that “UnitedHealth Group Brasil does not comment on market speculation”.
Amil has around 5,4 million beneficiaries
The Brazilian operation, for which the company paid almost R$10 billion a decade ago, is small for the size of the American giant, and has losses mainly in individual health plans. Tanure also reportedly asked for protection from other litigation in his offer.
Amil, a competitor of Unimed, is the fourth largest operator in the country, behind NotreDame Intermédica, Hapvida and Bradesco Saúde, with a 6% market share, according to ANS. The company has around 5,4 million health and dental plan beneficiaries, 31 hospitals and 28 medical clinics.
With the business, Junior returned to the health sector, in which he made a fortune. Known for having built Qualicorp, which became a giant health plan for professional associations, he will have the challenge of fixing the accounts of a company that currently has negative cash generation, in the region of R$2 billion.
