KPMG acted as lead advisor in the M&A transaction between Südamekodud AS and Penta Hospitals International

Penta Hospitals International, a leading healthcare and long-term care group in Central Europe, acquired Südamekodud AS, Estonia’s largest provider of elderly care services. The aim of Penta Hospitals is to accelerate investments in Estonia and the Baltics, bring international expertise to the region and develop Südamekodud AS into the leading care services company in the Baltics.

KPMG Baltics M&A team acted as the lead sell-side advisor to the owners of Südamekodud AS. In addition to M&A, KPMG Baltics also provided financial, tax and legal vendor due diligence services, as well as legal transaction support.

According to Dmitri Ševoldajev, Head of M&A at KPMG Baltics, this is the largest transaction in recent history within the Baltic social care sector, demonstrating the progress that has been made in improving care quality and service availability in the region.

The transaction confirms that Estonia remains an attractive investment destination for international capital, while also confirming that the private sector is instrumental in solving healthcare provision and driving innovation as well as efficiency.

Dmitri Ševoldajev

Head of M&A at KPMG Baltics

He emphasized that the transaction provides clear proof of how the business model developed by Estonian owners is attractive for an international group. “Estonian entrepreneurs can develop successful and internationally competitive business models and Südamekodud is a clear example of this,” Ševoldajev added.

Südamekodud is Estonia’s largest provider of elderly care services. The group operates 12 care homes across Estonia, is home to more than 1,500 residents and employs 750 people.

Penta Hospitals International is a leading healthcare and long-term care provider in Central Europe, operating hospitals, outpatient clinics, elderly care facilities and home care providers in Slovakia, Czechia and Poland. The group runs 53 hospitals, 62 outpatient clinics, 61 elderly care facilities and 8 home care providers, with more than 22,000 employees.