ORPEA’S POSITION IN PREMIUM NURSING HOMES IN GERMANY STRENGTHENED WITH ACQUISITION OF 7 FACILITIES AND SET-UP OF A DEDICATED JOINT VENTURE
Frankfurt, 7th November 2018. The ORPEA group, a world leader in long-term care (nursing homes, post-acute and rehabilitation hospitals, psychiatric hospitals, and homecare services), announced the acquisition of Axion group in Germany.
ACXIT Capital Partners, represented by Thomas Klack and his team, acted as exclusive financial advisor to ORPEA in this transaction. The parties agreed not to disclose any details of the transaction.
Positions in Germany strengthened with the acquisition of the facilities of Axion group
As part of its selective expansion strategy, ORPEA is acquiring the facilities of German Axion group to build up its presence in the premium nursing homes segment in Germany.
That segment is still under-developed in Germany, but has substantial growth potential. Existing capacity consists of around just 20 facilities despite increasingly strong demand in the major cities for higher standards of quality and services.
The Axion group was founded in 2001 by Mr. Tavridis, its current CEO. He is regarded as a renowned expert in the German market given his over 20 years’ professional experience in the nursing homes sector and the successful premium model he built up. Axion currently operates 7 facilities with 985 beds, including 2 high-end nursing homes (275 beds) in Hamburg: Elbschloss Residenz and Elbschloss Residenz Klein Flottbek. In 2017, the facilities generated EUR 30 million in revenue with profitability levels that will be accretive to the margins of the ORPEA’s Central Europe region.
At the same time, ORPEA and Mr. Tavridis are setting up a joint venture 75%-owned by ORPEA to develop premium facilities in Germany. The aim of the new joint venture is to create new facilities in Germany’s major cities focusing solely on locations where purchasing power is very high. Mr. Tavridis will be the CEO of the joint venture.
The transaction is still subject to clearance from the German competition authorities. Axion’s facilities will be consolidated from 1st January 2019.
This deal fits perfectly with ORPEA’s strategy of moving the German network upscale, which aims to create significantly more value over the medium to long term, primarily by building new facilities that stand out from those run by other operators.
Yves Le Masne, Chief Executive Officer of ORPEA, commented:
“[…] ORPEA continued to execute its strategy of selective acquisitions by accelerating its expansion in the German premium nursing homes segment. As in every country ORPEA is building high-end capacity in prime locations to meet growing demand in major cities.”
Founded in 1989, ORPEA is one of the main world leaders in long-term care, with its network of 854 facilities, with 86,757 beds (13,599 of them under construction or redevelopment), including:
- 32,582 beds in France (2,223 beds under construction or redevelopment) at 346 facilities
- 54,175 beds outside France (Austria, Belgium, Brazil, China, Czech Republic, Germany, Italy, Netherlands, Poland, Portugal, Spain and Switzerland) at 508 facilities (11,376 beds under construction or redevelopment)
ORPEA is listed on Euronext Paris (ISIN code: FR0000184798) and a constituent of the SBF 120, STOXX 600 Europe, MSCI Small Cap Europe and CAC Mid 60 indices.
ACXIT Capital Partners is a leading international corporate finance and investment advisory firm for mid-market clients and entrepreneurs in Europe and abroad. Since 1998, ACXIT offers its clients comprehensive corporate finance advisory services including M&A and capital markets advisory as well as restructuring, equity/debt and strategic advisory. As an independent, privately owned firm ACXIT maintains offices in Frankfurt, Berlin, Munich, Leipzig, Zurich, Hong Kong as well as strong alliances in France, China, India and USA.
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Thomas Klack, Managing Partner
Stefan Hampker, Director
Marco Volk, Associate
Daniel Rival, Analyst