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Kiwi Healthcare Group Tamaki Health Set for New Private Equity Ownership

New Zealand's largest privately-owned primary healthcare group, Tamaki Health, is poised to change hands from one private equity firm to another, people familiar with the matter said.

U.S. private equity giant TPG has emerged as the frontrunner to acquire Tamaki Health from its current owner, Australian firm Mercury Capital, the sources said. The deal is expected to value the business at more than NZ$1 billion ($650 million).

Tamaki Health operates a network of medical clinics across New Zealand, providing general practice, pharmacy, and allied health services. The company has grown rapidly in recent years, both organically and through acquisitions, to become the country's biggest privately-held primary care provider.

The pending sale to TPG underscores the growing investor appetite for assets in the resilient healthcare sector, which has proven relatively immune to the economic volatility of the past year. Tamaki Health has continued to deliver steady earnings growth, even as many other industries have faced headwinds.

Acquiring Tamaki would give TPG a foothold in New Zealand's fragmented primary care market, which remains dominated by smaller, independent practices. It would also expand the firm's portfolio of healthcare investments across the Asia-Pacific region.

A TPG spokesperson declined to comment, while representatives for Tamaki Health and Mercury Capital did not respond to requests for comment.

Industry sources said TPG had beaten out several other suitors, including local and global private equity firms, in the auction process for Tamaki Health. The deal is expected to close in the coming months, subject to regulatory approvals.

Tamaki Health was founded in 2010 and has grown to operate over 100 medical clinics nationwide. The company has benefited from government initiatives to shift more healthcare services into the community setting, beyond traditional hospitals.

The pending sale would mark the second time in five years that Tamaki has changed private equity owners. Mercury Capital acquired a majority stake in the business in 2020, after it was previously backed by another Australian firm, Crescent Capital Partners.