IK’s Colisée bolts on Armonea Group

The deal sees Armonea Group valued at around €550m, according to Belgian publication De Tijd.

IK injected extra equity into Colisée in order to finance the acquisition, a source familiar with the situation told Unquote.

Armonea and Colisée are complementary in terms of the geographies covered; the combined group is expected to become the fourth largest European player in the elderly care segment, with around €1bn of revenues, 270 specialised facilities and 26,800 residents, according to a statement by IK.

Banks Natixis, Barclays, CIC and SG have provided financing for the transaction.

CVC and Centerbridge were also bidding for the asset, according to De Tijd. 

IK acquired a stake in Colisée via its €1.85bn IK VIII fund in 2017. The deal reportedly valued the business at €236m, according to French press reports. IK, when acquiring the business, clarified it intended to undertake a pan-European acquisitive growth strategy for Colisée. The business acquired Spain-based nursing home operator STS Grup in 2018.

Europe's elderly care sector has undergone considerable consolidation from private equity players in recent years, with GPs looking to capitalise on the ageing demographic across the continent. In October 2016, PAI Partners-backed HomeVi acquired Sarquavitae from Palamon Capital Partners, while Grand Sud Ouest Capital and Siparex Intermezzo acquired a stake in Omega from M Capital Partners.

Previous funding
The Armonea Group is the result of a merger between Restel Residences and Group Van den Brande in 2008. Since then, it has been owned by Belgian investment company Verlinvest and Group Van den Brande, each owning a 50% stake, according to De Tijd.

Company
Founded in 2008, Armonea is a retirement home operator with headquarters in Mechelen. It runs facilities across Belgium, Spain and Germany. The company manages nursing homes, service flats and residencies, employing around 7,000 people.

The business generated a turnover of €492m and posted an EBITDA of around €40m in 2017, Unquote understands.  

People
IK Investment Partners - Dan Soudry, Rémi Buttiaux, Diki Korniloff, Guillaume Veber, Vincent Valkiers.
Verlinvest - Frédéric de Mevius (chair), Nicholas Cator (executive director).
Colisée - Christine Jeandel (CEO).

Adviser
Equity – Lazard, Francois Guichot-Perere, Emmanuel Plantin; Natixis Partners, Ludovic Tron, Case, Damien Segond, William Gobbi (M&A); LEK, Serge Hovsepian, Arnaud Sergent (commercial due diligence); 8A, Pascal Raidron, Katia Wagner (financial due diligence); White & Case, Thierry Bosly, Muriel Alhadeff, Raphael Richard (legal). 
Vendor – Rothschild, Franck Demeoen, Jean-Francois Limpens; PJT, Alberto Fernandez, Kiara Mitchinson (M&A).

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• Topics
• Expansion
• France
• Healthcare
• France
• IK Investment Partners
• Build-up