HgCapital offers new home to Casa Reha

Care home provision is a hot segment in Germany at the moment, offering attractive investment opportunities. In late 2007, AUCTUS Management bought PROCON Group (November/December 2007), and other deals are rumoured to be in the pipeline for various private equity houses.

Hedge funds have also shown an interest. In December 2007, Audley Capital bought a 10.1% stake in SDax-listed Curanum, a Munich-based care home services provider.

The segment is consolidating as already indicated in early 2007, when Casa Reha acquired fellow nursing home group Unternehmensgruppe Sozialkonzept GmbH (March 2007, page 9). Now it is Casa Reha itself that has found a new home. In a secondary buyout, HgCapital has acquired a majority stake from Advent International and the management. Both vendors reinvested and retain a substantial minority stake in the company.

Casa Reha already has a history of private equity investors. In 1999, Chase Capital Partners and German Equity Partners took minority stakes. The majority was held by its US parent group Covenant Care Inc, an investee of Chase Capital Partners. The current vendor, Advent International took over the helm of Casa Reha in a management buyout in 2005.

Looking at the market, private suppliers outpace suppliers that are run by the state, communities or charities. The highly-fragmented nursing and care home sector in Germany, and the fact that private healthcare suppliers are becoming more important, offers an excellent framework for a consolidation game. Page 41.

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