Diacor and Terveystalo to merge
Suomen Terveystalo Oy and the Helsinki Deaconess Institute Foundation have agreed on a merger between Diacor terveyspalvelut Oy and Terveystalo. As a result of the merger, the Helsinki Deaconess Institute Foundation will become a major shareholder of Terveystalo, the largest healthcare provider in Finland. The merger will reinforce Terveystalo's national growth strategy and increase its Finnish ownership. The reorganization of business must be cleared by the Finnish Competition and Consumer Authority.
“Diacor is a reputable, high-quality healthcare service company, and its inclusion will reinforce Terveystalo’s network in the highly competitive Helsinki metropolitan area. The two companies share the same values and both employ a staff of top professionals. By combining our strengths and existing development projects, we can create something unprecedented in the market today,” says Yrjö Närhinen, Chief Executive Officer at Terveystalo.
Owned by the Helsinki Deaconess Institute Foundation, Diacor operates 13 clinics and a hospital in the Helsinki metropolitan area and one clinic in Turku. The facilities are staffed by approximately 700 employees and 800 independent practitioners. In 2015, the company's total sales amounted to approximately EUR 129.2 million.
“The foundation's main goal for this merger is to increase the value of its assets. This way, we can ensure that we will achieve our main strategic goals: securing funding for our Christian charity efforts and investing in the innovating our operations. We intend to continue to provide services for the most vulnerable individuals in our society and improve the Finnish welfare society. We will allocate further resources to our social services efforts, such as our care services business. Becoming a Terveystalo shareholder means that we will be able to participate in developing better healthcare in Finland,” says Olli Holmström, Chief Executive Officer at the Helsinki Deaconess Institute Foundation.
Diacor's hospital in Helsinki and its clinics in the Helsinki metropolitan area and Turku will continue to serve clients as usual.
According to Holmström, Diacor has invested heavily in digitalization, service quality and professionalism as well as renewing its healthcare services and bringing its customer experience to a new level. “I believe that together, Diacor's and Terveystalo's professionals can achieve more,” Holmström says.
The Helsinki Deaconess Institute Foundation will subscribe for Terveystalo shares and then become a major Terveystalo shareholder. As part of the transaction, LähiTapiola Keskinäinen Vakuutusyhtiö and LähiTapiola Keskinäinen Henkivakuutusyhtiö will sell all of their Diacor Terveyspalvelu Oy shares to Terveystalo. The reorganization of business must be cleared by the Finnish Competition and Consumer Authority.
“When the merger between Terveystalo and Diacor goes through, we will receive a new domestic shareholder with a long-term view of the future. This will further solidify the company's Finnish ownership and ensure that the development of Terveystalo and the overall Finnish healthcare system is, first and foremost, in Finnish hands,” Närhinen says.
With its 170 clinics across Finland, Terveystalo has the largest network of any healthcare service company in the country. A forerunner in healthcare services, the company is ranked as the most desirable employer among professionals. In 2015, the total sales of the company's healthcare services amounted to EUR 505.6 million. Terveystalo employs more than 6,800 healthcare professionals nationwide.
The principal owner of the company is EQT, a Nordic private equity firm. Oher direct owners include the Varma Mutual Pension Insurance Company, the Terveystalo management team and other key company personnel. Through EQT VI investments, Terveystalo is owned by several Finnish institutional investors, such as Sampo, Ilmarinen, Keva and the State Pension Fund.
Yrjö Närhinen, Chief Executive Officer at Terveystalo, tel. +358 30 633 1601
Juha Tuominen, Chief Medical Officer at Terveystalo, tel. +358 30 633 1436
Susanna Kinnari, Communications Director at Terveystalo, tel. +358 50 545 8333
Olli Holmström, Chief Executive Officer at the Helsinki Deaconess Institute Foundation,
tel. +358 50 48 36 313
Laura Niemi, Communications Director at the Helsinki Deaconess Institute Foundation,
tel. +358 50 373 8602
Erkki Moisander, Chairman of the Board of Directors at LähiTapiola, tel. +358 9 4531
Terveystalo offers versatile healthcare and occupational healthcare, medical and examination services in 170 clinics around Finland. Our customers include private individuals, companies and communities, insurance companies and the private sector. Terveystalo employs more than 6,800 healthcare professionals nationwide, and is a member of the Association of Finnish Work. In 2015, Terveystalo's tax footprint totaled EUR 75.7 million. In the same year, the company invested more than EUR 68.6 million in the development of Finnish healthcare services. www.terveystalo.com
The Helsinki Deaconess Institute is a public utility foundation with extensive expertise in societal problems and matters concerning special interest groups. HDI creates new solutions in areas where human dignity is threatened. Our operations are steered by the Christian ethos of charity: of loving your neighbor. The social enterprise group and its subsidiaries provide wide-ranging social welfare, healthcare and education services. The proceeds from the group's operations and assets are used to promote health and well-being and to build a more just society.
Owned by the Helsinki Deaconess Institute and LähiTapiola, Diacor is a completely Finnish welfare company. Diacor operates 13 full-service clinics in the Helsinki metropolitan area, one clinic in Turku and Finland’s longest-standing private hospital in Helsinki’s Ruoholahti district.