HTG, Asterion and Alsa invest 2.5 billion in medical transport
Large ambulance groups are preparing proposals for emergency and elective services from the two administrations with the largest budgets.
Large groups operating in this sector medical transportThey are refining their proposals for the tender for ambulance contracts in Catalonia and Madrid.two regions that have tendered for new services for the next five years and that are addingn business portfolio of approximately 2,500 million euros.
HTG, Serveo and SSGthree large national corporations controlled by investment funds; Sanirambulance company owned Alsa and Tracinsa; Falck, Santa Sofia, La Pau Group and Sasuamong others, are on the list of candidates to manage this business, which, Despite ongoing consolidation processes, it remains highly fragmented and in the hands of local companies. The five largest companies have a share of 38%.
IN CataloniaThe Generalitat is trying to renew the competition for the use of urgent and non-urgent services in the region, one of the largest in Spain. The regional government divided the tender into 10 lots For operate for a period of five years with an initial budget of $2.3 billion. Euro. There is a maximum expectation in the absence of the granting authorities deciding the latest appeal lodged against the specifications to the Catalan Public Sector Contracts Court.
Companies take stock of a business that has traditionally been backed by low margin and that in some cases They create tension between granting authorities and contractors. This conflict has recently affected the ambulance services of the Basque Country and Cantabria with threats of strikes.
In Catalonia, the terms of the contract are very strict, because successful bidders are required to transfer existing staff. In addition, they must conduct significant investment in a new modern fleet.
According to interviewed sources, Extending the service will mean purchasing about 1,500 new ambulances.which is a serious complaint for the major car brands for this type of vehicle.
In the treaty with Catalonia The Generalitat has established that the same contractor cannot work on more than three lots.. Barcelona is divided into three areas, which are also to be operated by different companies. The Catalan ambulance service TSG and the Egara group are currently operating.. TSG is a leader in the sector with a national market share of 20%, according to its data.
Structure of medical transport It brings together companies with a strong local and family vocation, with a large number of industrial profiles and companies in the hands of investment funds with a vocation for medium-term stability.
In 2021 funds ProA Capital and Investindustrial sold Health Transportation Group (HTG) to Real Assets IM for approximately $200 million.. Last year, Asterion Industrial PartnersSpain’s largest infrastructure fund has entered the hospital services sector. acquisition of Seville-based Servicios Socio Sanitarios Generales (SSG), an ambulance operator based in Seville and founded in 2000 by Diego Prieto. Sources close to the negotiations note that The valuation of SSG exceeded 150 million euros.which is seven times gross operating profit (EBITDA).
Serveoventure fund services group Portobello, also deals with medical transport. Are Sanir partnerscompany created Alsa (Mobiko) and Tracinsa that they have been running Madrid’s emergency services in a joint venture since last year and that they are also analyzing the tender for regular medical transport that the regional government is about to award soon.
The management of Madrid put up for auction five lots for a period of five years with an estimated contract value of about $230 million. Euro. This competition also includes maximum attendance of groups already present on the market (Santa Sofia and Sasu) and operators such as HTG and SSG who want to gain market share.
As in Catalonia, interested parties will have to buy a new ambulance fleet (about 350 vehicles)with staff subrogation and without price revision.
Market about 2000 million per year
Health care is one of the main items of the Spanish budget. Mobility of health care users is among the bills that are growing the most as the population ages and benefits increase. According to the latest industry report prepared by Informa, the turnover of ground medical transport services in 2023 showed a positive trend: turnover amounted to 1.725 million euros, which is 7.1% more than in 2022. Activity was supported by increases in tariffs used to offset rising costs, especially driven by marked increases in energy prices. Forecasts indicate an increase of 5% annually between 2024 and 2025, leading to a figure close to €1.9 billion. There were 234 companies at the start of 2024, down about 25% from two years earlier, indicating a slow but progressive process of industry consolidation.