Bradesco Consolidates Healthcare Operations into Bradsaúde, Creating a New Market Giant
Bradesco consolidates multiple healthcare businesses into Bradsaúde, aiming for a R$ 52 billion revenue company serving over 13 million beneficiaries, marking Brazil’s largest healthcare sector reorganization.
- • Bradesco merges its healthcare businesses into Bradsaúde with projected revenue of R$ 52 billion.
- • Bradsaúde will serve over 13 million beneficiaries and consolidate health and dental plans.
- • Bradesco’s stake will increase to 91.35%, with potential market valuation up to R$ 50 billion.
- • The restructuring involves three phases including spin-offs and asset incorporations.
- • Market reacted positively, with Odontoprev shares rising over 20% post-announcement.
Key details
Bradesco has officially announced a major consolidation of its healthcare businesses, forming a new company called Bradsaúde. This consolidation encompasses subsidiaries including Bradesco Saúde, Odontoprev, Mediservice, and other assets, with the aim of forging a comprehensive healthcare ecosystem and accelerating hospital network expansion through Atlântica Hospitais Participações.
Bradsaúde is poised to become a significant market player with annual revenues projected at R$ 52 billion and a customer base exceeding 13 million beneficiaries. The restructuring unfolds in three phases: a partial spin-off from Bradesco Seguros to transfer shares to Bradesco, the incorporation of Bradesco Gestão de Saúde by Odontoprev, and the transfer of dental plan assets to Mediservice, which will also be under Odontoprev's control.
Bradesco's controlling stake in the consolidated entity will rise to 91.35%, with an anticipated market valuation between R$ 40 billion and R$ 50 billion. This move effectively brings Bradesco's full healthcare operations to the stock market through Odontoprev, which will be renamed Bradsaúde. Odontoprev's shares experienced a market surge of over 20%, reflecting investor enthusiasm. Bradesco's shares also increased by about 2.7% following the announcement.
Chairman Luiz Carlos Trabuco Cappi described Bradsaúde as a landmark transaction and a new opportunity in the capital markets, highlighting the strategic consolidation of health and dental segments under one umbrella. Marcelo Noronha, CEO of Bradesco, emphasized the enhanced growth prospects this restructuring offers.
The reshaped portfolio includes around 3,600 hospital beds and 35 clinics, along with partnerships involving leading diagnostic and hospital networks. The consolidated operation is expected to achieve a net profit of R$ 3.6 billion by 2025. Regulatory approval from shareholders and the National Agency for Supplementary Health (ANS) is pending to finalize the transaction.
Financial and legal advisory for this complex deal was provided by Bradesco BBI and J.P. Morgan. While market analysts note possible challenges managing a healthcare unit with diverse segment synergies, the initiative clearly signals Bradesco’s commitment to strengthening its footprint in Brazil’s growing healthcare sector.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
Source articles (2)
Source comparison
Market value estimates
Sources report different estimated market values for Bradsaúde
oglobo.globo.com
"The CEO of Bradesco, Marcelo Noronha, estimated that the market value of Bradsaúde could reach between R$ 40 billion and R$ 50 billion."
bloomberglinea.com.br
"The implied market value of the operation is around R$ 37 billion."
Why this matters: One source estimates the market value of Bradsaúde to be between R$ 40 billion and R$ 50 billion, while the other suggests it is around R$ 37 billion. This discrepancy affects understanding of the financial implications of the consolidation.