Private equity is continuing to drive consolidation in the fertility sector, with $2.9 billion invested across 30 buyouts globally this year, according to PitchBook data.
As more people look to have children later in life, demand for services that can aid reproduction has increased. In a recent report, investment bank Harris Williams estimates the global fertility services industry to be worth $8 billion and projects in vitro fertilization services will grow roughly 10% annually through 2025.
Last year, PE investment in the sector peaked with 41 buyouts worth a total $8.4 billion. This included the sector’s largest PE buyout yet: KKR‘s roughly $3.2 billion acquisition of Spain-headquartered IVI-RMA Global.
This month, KKR’s IVI-RMA and GED Capital bought Barcelona-based fertility business Eugin Group, a division of German healthcare company Fresenius, for $534 million. Eugin operates 69 clinics in 11 countries, adding to IVI-RMA’s global presence.
There has also been notable activity in Asia-Pacific where demand for fertility services is also growing. In August, BPEA EQT bought a majority stake in India’s largest fertility clinic chain, Indira IVF, valuing the company at $1.1 billion. A report by Allied Market Research predicts the country’s IVF services market will reach about $4.7 billion by 2032, with an annual growth rate of 18%.
Meanwhile, in Australia, QIC-backed Nexus Hospitals acquired Montserrat Day Hospitals, a clinic that provides a wide range of services including IVF treatment, for $94 million in May.
Featured image by Nata Serenko/Getty Images
Learn more about our editorial standards.
