CDPQ backs Colisée alongside EQT

EQT Infrastructure entered exclusive negotiations to acquire Colisée from IK Investment Partners at the beginning of September.

The GP has bought a majority stake in the company via EQT Infrastructure V, which has a target size of €12.5bn. The vehicle will be 5-10% deployed based on total fund volume following the investment, according to a statement. 

IK launched the sale process for Colisée in March 2020, attracting numerous bidders, including Antin IP, Macquarie, EQT, CVC and a consortium led by HLD and Predica. According to press reports, the company has been valued at around €1.5bn, which equates to approximately 11x its EBITDA of €140m.

Colisée specialises in managing a network of elderly care homes and providing at-home care services. It runs 270 nursing homes across France, Belgium, Spain and Italy, housing 25,000 residents. The business generates annual revenues of around €1bn and employs 16,000 staff.

The group has a long history in private equity hands. Natixis acquired a minority stake in the business in 2010, investing growth capital of €21.5m. Subsequently, Eurazeo backed Colisée in July 2014 in a €175m deal, acquiring a 64% stake in the company while Natixis fully exited the investment.

IK bought Colisée from Eurazeo in April 2017, investing via IK VIII, which held a final close in November 2016 on €1.85bn. The acquisition of Colisée was valued at €650m. The company reported revenues of €390m and managed 90 care homes at the time of IK's investment.

EQT and CDPQ intend to support the company in its growth strategy in France and internationally, while consolidating its care and services offering.

"For CDPQ, this acquisition represents a significant investment in healthcare infrastructure, an essential sector where needs are growing and where Colisée is well positioned," said Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ. 

The Canadian pension fund is an active investor in private equity in North America and Europe, via both direct and fund investments. It has made several deals in France in the last few years, including the acquisition of public transport management company Keolis. CDPQ invested in the business by taking part in a consortium led by Axa Private Equity.

The pension fund also bought a minority stake in Biogroup-LCD, a network of medical and biology laboratories. CDPQ invested €180m through a capital increase, while founder and CEO Stephane Eimer retained a majority stake in the business.

In France, CDPQ also invested in industrial group Delachaux, which was valued at around €1.5bn, from CVC Capital Partners.

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• Topics
• Buyouts
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• EQT
• France