Notice to the Market – Acquisition of a hospital in Juazeiro do Norte State of Ceará

Notice to the Market 

Fortaleza (CE), June 06th, 2019 – HAPVIDA PARTICIPAÇÕES E INVESTIMENTOS S.A. (B3: HAPV3 – Company) announces to its shareholders and to the market that, in line with the expansion strategy discussed since its IPO, signed on this date the agreement for the purchase and sale of quotas and other pledges, through its subsidiary Ultra Som Serviços Médicos (“Ultra Som”), through which it will hold the Hospital das Clinicas e Fraturas do Cariri S/S Ltda., a company headquartered in Juazeiro do Norte, Ceará State (Hospital).

The Hospital, which has 59 beds divided into 3,375sqm of constructed area and 7,300sqm of land, aims to expand service in the region of Juazeiro do Norte/CE after the acquisition of the Free Life client portfolio – occurred in October 2018 – which expanded the Company’s activity area to the Cariri region, which includes the municipalities of Juazeiro do Norte, Barbalha and Crato. The Company will start selling its products in this region, opening new markets for organic expansion in the Northeast region. The Hospital was acquired for R$ 16.5 million.

The Company reiterates its commitment to the organic and inorganic expansion of the number of beneficiaries, both in the localities where it already operates and in new markets, which involves expanding the structure of its own service network in order to maintain current quality standards.

Bruno Cals de Oliveira
Chief Financial Officer and Investor Relations Officer