Midland-based Catalyst Corporate Finance has advised on the sale of Medicals Direct Group to Capita for up to £15.2 million.

MDG is the pre-eminent provider of outsourced medical screening services for UK life insurers.

Outsourcing to MDG increases efficiency, cuts costs and improves turnaround times. MDG has around 180 employees across six offices.

MDG made a pro forma operating profit of £2.25 million on revenue of £18.6 million for the year ended December 31.

Capita chief executive Paul Pindar said: “MDG provides more than 150,000 medical screenings every year, primarily to the life and pensions sector. The acquisition adds new capabilities to Capita by, for example, allowing Capita to enter the home-based screening market. This investment works well with our existing portfolio of clinic and mobile unit screening services, aligns our health proposition with Capita’s existing life and pensions business and adds important new capability to large scale contracts we may be targeting in the wider private and public sectors.”

Catalyst worked with the MDG shareholders over a 12 month period, advising on the separation of Medicals Direct Group into separate divisions, culminating in the sale of three businesses to three different buyers. The majority of the Group’s activities have been sold to Capita. This is the third healthcare deal that Catalyst has completed this year.

Richard Sanders, partner at Catalyst, said “Our knowledge gained from having advised several businesses in this sector, coupled with our insight into Capita’s acquisition strategy, was critical in ensuring a successful outcome for the shareholders.”