South African hospital group Medi-Clinic Corporation on Thursday announced the acquisition by its Swiss business, Hirslanden, of a 66.67% interest in Klinik Stephanshorn from the Blumenau-Leonie-Hartman Foundation.

The parties to the transaction have agreed not to disclose the purchase consideration, which will be funded from internal sources. An offer will also be made to the other minority shareholders of Klinik Stephanshorn.

Klinik Stephanshorn, an 85-bed multi-disciplinary hospital, is the largest private hospital in the canton of St Gallen and the only in the city of St Gallen. It has always been earmarked for incorporation in the Hirslanden group because of its strategic value.

Together with Hirslanden's existing 62-bed hospital, Klinik Am Rosenberg, situated in the nearby Heiden, Appenzell Ausserrhoden, it significantly strengthens Hirslanden's strategic position in Eastern Switzerland.

The two hospitals complement each other and will create synergies for current and future development of acute hospital carein Eastern Switzerland.

The transaction is expected to close on or about 1 October 2010. After the transaction, the Hirslanden group will consist of 14 hospitals with 1 457 beds in 10 cantons.

Medi-Clinic said the market offers many growth opportunities and to capitalise on the full growth potential of the transaction, further capital expenditure is planned.

This is expected to take place by 2015 and will further enhance investment returns.