ACXIT CAPITAL PARTNERS ACTED AS EXCLUSIVE FINANCIAL ADVISOR TO ORPEA GROUP IN GERMAN/GERMAN TRANSACTION
Frankfurt, 23 September 2015. Following the acquisition of Residenz Gruppe Bremen (3,006 beds) in July 2015, the perfect foil for the network in North Western Germany, ORPEA has signed another deal in September, acquiring the Vitalis regional nursing home group (2,487 beds). ACXIT Capital Partners acted as exclusive financial advisor to ORPEA in this transaction. The parties agreed not to disclose any details of the transaction.
The network consists of 2,487 beds in 25 facilities (including 295 beds under construction). Vitalis represented an ideal opportunity to bolster ORPEA’s presence in Germany in line with its criteria for acquisitions:
- a recently built, high‐quality network: facilities with an average of 100 beds, 78% in single rooms, and 80% of facilities built less than five years ago;
- a great fit with the existing network: locations predominantly in Southern and South Eastern Germany (Bavaria and Saxony), while a part of the Vitalis facilities can be integrated into existing clusters, a new cluster with critical mass will be established in Bavaria;
- substantial potential for margin increase: synergies, operational efficiency gains by introducing ORPEA’s procedures, ramp‐up in recently opened facilities, etc.
Vitalis is expected to generate revenues of €58 million in 2015 and will be consolidated from 1 January 2016. The acquisition will be funded solely using the Group’s cash reserves.
This transaction will accelerate ORPEA’s growth in Germany, as Vitalis significantly improves the positions all over Southern Germany (Bavaria) as well as in South Eastern Germany (Saxony), where ORPEA had a limited presence so far. In both regions, ORPEA has now ideally positioned platforms for further organic growth.
ACXIT Capital Partners, represented by Thomas Klack and his team, acted as financial advisers, with CMS Hasche Sigle acting as ORPEA’s legal counsel.
Germany: creation of more than 1,600 new beds
In parallel with these two complementary acquisitions completed since summer, ORPEA has been very actively setting up new facilities in Germany. Since the beginning of the year, the Group has launched the construction of 1,607 beds in 14 facilities and extensions.
These projects, which are due to open over the next few years, will create substantial value: feature strategic locations in urban areas, a single room rate of 100%, the latest generation of high-calibre equipment, and a real estate concept designed by ORPEA’s teams in Germany.
In less than two years, ORPEA has built a German network of 16,074 beds at 156 facilities, including 2,935 beds under construction. ORPEA now ranks as Number 3 of Germany’s private nursing home operators.
Founded in 1989, and listed on Euronext Paris since April 2002, ORPEA is a European leader in integrated Long‐Term Care and Post‐Acute Care. The Group has a unique network of 690 healthcare facilities, with 67,987 beds (10,439 of them under refurbishment or construction), including:
- 32,743 beds in France at (3,349 beds under refurbishment or construction) at 354 facilities;
- 35,244 beds in the rest of Europe (Germany, Austria, Belgium, Spain, Italy, Czech Republic and Switzerland) at 336 facilities (7,090 beds under refurbishment or construction).
About ACXIT Capital Partners
ACXIT Capital Partners is a leading international corporate finance and investment advisory firm for mid-market clients and entrepreneurs in Europe and beyond. Since 1998, we offer our clients comprehensive corporate finance advisory services including M&A and capital markets advisory as well as restructuring, debt and strategic advisory. As an independent, privately owned firm we maintain offices in Frankfurt, Berlin, Munich, Zurich, Vienna and Hong Kong as well as strong alliances in France, China, India and the USA.
To date, we have completed more than 350 transactions with a total deal/financing volume of approx. EUR 17bn. Our clients are corporations, family-owned businesses, entrepreneurs, financial sponsors and family offices. While our home market is in the German speaking region, most clients are international and transactions cross-border. (www.acxit.com)
ACXIT Capital Holding GmbH
60323 Frankfurt am Main
Dr. Ingmar Ackermann, Managing Partner
Thomas Klack, Managing Partner
Ruta Morkeliunaite, Executive Director
Stefan Hampker, Associate
Philipp J. Keller, Analyst