Advent and Bain push for full control of Brazil's Amil as price stalls talks

The firms approached businessman José Seripieri Filho, known as Júnior, about buying all of Amil, and while the size of their offer drew him in, he proposed keeping a minority stake. Two people close to the private equity firms told Valor that they have no interest in retaining Seripieri as a shareholder and will not settle for less than full ownership. With that principle unresolved, the sides are now haggling over the finer points of valuation, alongside working capital and the structure of any transaction.

Seripieri, founder and former chief executive of insurance broker Qualicorp, bought Amil from UnitedHealth in early 2024 at a valuation of about R$11bn ($2.1bn), of which roughly R$9bn ($1.7bn) related to contingent liabilities, putting in around R$2bn of equity for a loss-making business the US group was desperate to offload. UnitedHealth exited Brazil in the process, booking a charge of about $7bn, most of it non-cash currency translation losses. Well connected in Brasília, Seripieri spent the following two and a half years resolving regulatory issues and reducing the insurer’s contingent liabilities. A R$17bn valuation now, against the R$11bn he paid, helps explain why he is reluctant to hand over the upside in full.

Bain first approached Seripieri early last year about taking control, but those talks stalled. It later joined forces with Advent and resumed the effort, this time targeting Amil outright.

The partnership pairs two firms with deep Brazilian healthcare pedigree. Advent, which this year became a major shareholder in cosmetics group Natura and took two board seats, already knows the sector through its investment in diagnostics company Fleury, while Bain previously owned health insurer NotreDame Intermédica.

There is no formal deadline, but market participants expect a transaction could be completed before the end of the year.

Growth in Brazil’s private health insurance market has stalled, and Hapvida, the country’s largest operator, has shed R$14.2bn ($2.7bn) in market value over the past 12 months.