Pihlajalinna’s €31.8 Million Acquisition of Pohjola Hospital

Pihlajalinna's €31.8 Million Acquisition of Pohjola Hospital

Merilampi represented Pihlajalinna Terveys Ltd. on the deal. Castrén & Snellman advised OP Financial Group in the sale.

Pihlajalinna Terveys Ltd, part of Pihlajalinna Group, has agreed to acquire the entire share capital of Pohjola Hospital Ltd from its current owner Pohjola Insurance Ltd.

The net debt-free purchase price, to be paid in cash, is EUR 31.8 million.

In connection with the acquisition, Pihlajalinna will also sign a new five-year service agreement with Pohjola Insurance. Already, Pihlajalinna has previously partnered with Pohjola Insurance within the national multi-producer model. The service agreement to be signed in connection with the acquisition also covers a wide range of health services other than those offered by the acquired company.

Established back in 2013, Pohjola Hospital is a chain of hospitals specialising in orthopaedics, i.e. treatment of musculoskeletal disorders and accidents. The company’s net revenue was EUR 59.4 million in 2020 and EUR 74.2 million in 2019. The company’s largest customer is Pohjola Insurance Ltd. More detailed financial information for the company is presented at the end of this stock exchange release. Pohjola Hospital operates in five cities with university hospitals: Helsinki, Tampere, Turku, Oulu and Kuopio. The company employs approximately 270 people and more than 300 individual subcontracted professionals.

20-year-old Pihlajalinna is one of the largest private social and healthcare services providers in Finland. The company serves private individuals, businesses, insurance companies and public sector entities, such as municipalities and joint municipal authorities. Pihlajalinna is under Finnish ownership and we pay all our taxes in Finland.

OP Financial Group is Finland’s largest financial services group, with two million owner-customers and over 12,000 employees. OP Financial Group consists of approximately 137 OP cooperative banks, their central cooperative OP Cooperative, and the latter’s subsidiaries and affiliates.

The Merilampi team included Ari Keinänen (Picture), Olli Nikitin, Satu-Anneli Kauranen, Niko Kolsi, Hilma Parvela, William Sjöberg and Aino Jankari.

The Castrén & Snellman team included Carola Lindholm, Markus Rahnu, Andreas Slotte, Sami Lommi, Suzanne Simon-Bellamy and Aino Rautanen.

Involved fees earner: Carola Lindholm – Castrén & Snellman; Sami Lommi – Castrén & Snellman; Markus Rahnu – Castrén & Snellman; Aino Rautanen – Castrén & Snellman; Suzanne Simon-Bellamy – Castrén & Snellman; Andreas Slotte – Castrén & Snellman; Aino Jankari – Merilampi Attorneys Ltd.; Satu-Anneli Kauranen – Merilampi Attorneys Ltd.; Ari Keinänen – Merilampi Attorneys Ltd.; Niko Kolsi – Merilampi Attorneys Ltd.; Olli Nikitin – Merilampi Attorneys Ltd.; Hilma Parvela – Merilampi Attorneys Ltd.; William Sjöberg – Merilampi Attorneys Ltd.;

Law Firms: Castrén & Snellman; Merilampi Attorneys Ltd.;

Clients: OP Financial Group ; Pihlajalinna Plc ;

Federica Tiefenthaler

Author: Federica Tiefenthaler