Private healthcare provider of medical services
In June 1999 Montagu made a further investment in the healthcare sector when it acquired a majority stake in the Swedish business M&M Medical ("M&M"), as part of a leveraged recapitalisation. Founded by Mikael Lönn in 1986 in Stockholm, M&M had become the leading Swedish private healthcare provider of medial diagnostics, treatment and operations. The company operated four local hospitals in Sabbatsberg, Täby, Dalen and Järva and eight specialised units performing radiology examinations (MRT, ultrasound and conventional x-ray), cataract operations and hearing aid tests.
M&M was able to generate significant contributions in all its established activities aided by an industrial approach to output. To maintain efficiency, only selected types of patients were treated for a set number of conditions and the operating procedures were redefined to optimise the flow of patients and the quality of treatment. In this process the company had received an ISO9000 certification.
In the years leading up to the transaction, Mikael Lönn had made the conscious effort of withdrawing from the day-to-day running of the business to play a more strategic role. Regardless of this, Mr Lönn was still key to the business and its relationship with the key public sector bodies, and agreed to continue as an active board member.
Montagu acquired a 75% stake in the business, of which 10% was transferred to key individuals within M&M. The company was looking for a strong and experienced partner that could provide it with long-term support as competition in the market place intensified whilst giving the founder/owner a possibility to realise some of his investment.
Thanks to its excellent reputation in terms of quality, the good relationship it had maintained with local authorities and the increased private sector involvement in the Swedish healthcare sector, M&M continued to grow rapidly.
In July 2001, M&M was sold to Stockholm-based medical services contract company, ISS CarePartners AB, a subsidiary of the Copenhagen and London listed support services group ISS A/S.