PIP Implants Firm Transform In Takeover Talks

One of the cosmetic surgery providers at the centre of the controversy surrounding PIP breast implants is in advanced talks about a sale to a German investment fund.

Sky News has learnt that Transform Cosmetic Surgery Group, which oversees thousands of procedures each year, is in detailed negotiations over a takeover by Aurelius Investments or another interested party.

An announcement about a change of ownership could be made as soon as this week.

Transform, which marked its 40th anniversary earlier this year, is majority-owned by Candlewick, a joint venture between TPG, the private equity firm, and an arm of Goldman Sachs, the Wall Street investment bank.

It was previously minority-owned by Lloyds Banking Group, the taxpayer-backed lender.

Insiders said on Thursday that among the options which had been explored for Transform was a pre-pack administration, a controversial process which allows the buyers of companies' assets to acquire them without taking on historic liabilities.

It is unclear whether such a mechanism could be used in the case of Transform to allow its new owner to shed financial responsibility for outstanding claims from patients who were given faulty PIP breast implants.

If such a move were to take place, it would be hugely controversial, although one source close to the process insisted that the focus was on "a straight share sale" rather than a pre-pack administration or another form of restructuring.

The controversy over PIP implants sprang to prominence in 2011 when some women reported that breast enlargement procedures using Poly Implant Protheses, an industrial-grade silicone, had ruptured.

Transform and other cosmetic surgery providers became embroiled in a row with the then Health Secretary Andrew Lansley in January 2012 when they refused to pay for the removal of the defective implants, citing their prior approval by the Government and health watchdogs.

Later in 2012, Transform launched what it claimed was the first cosmetic surgery patient charter, called Clear.

The company now operates more than 25 clinics across the UK, but detail about its current financial health is difficult to obtain from public sources.

Sources close to Transform, which had a large share of the market for PIP breast enhancement surgery, confirmed that there was "a large number" of outstanding claims against it.

Candlewick is understood to have decided earlier this year that Transform was a non-core asset and hired Zolfo Cooper, a professional services firm, to oversee an auction.

A source said that Aurelius, which owns the Scholl footwear business, could move to acquire Transform's debts within days.

A number of other medical groups and financial investors made offers for Transform, although sources said that Aurelius was the leading candidate to acquire the business.

It is thought that approval for a change of control of the company may be required from the Care Quality Commission, the industry regulator.

Spokesmen for Transform, which offers a wide range of other popular cosmetic surgery treatments, did not return calls seeking a comment.

Aurelius and Candlewick declined to comment.