ICG transfers Esperi ownership to lenders

Alessia Argentieri
04 February 2020

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Intermediate Capital Group (ICG) has transferred the ownership of Esperi, a Finnish residential care provider, to a lending group composed of Danske Bank, Ilmarinen and SEB, due to the deteriorated financial situation of the company.

Esperi will be owned by a new parent company established by the lenders. Ilmarinen, which currently controls around 4% in the business, will hold 20% in the newco, while Danske Bank and SEB will own approximately 40% each.

Esperi's financial situation deteriorated significantly in 2019. Valvira, Finland's healthcare regulator, closed one of Esperi's facilities in Kristiinankaupunki in January 2019, after one elderly resident was suspected to have died due to negligence. The authority allegedly found negligence that had severely endangered the safety and well-being of the residents, including inadequate medical staff, lack of basic care and inappropriate drug treatment.

Following the deal, Markus Sjöholm will replace Harri-Pekka Kaukonen as chair of the board of directors, while Anne Korkiakoski and Petri Heikkilä will join as board members. The company CEO Stefan Wentjärvi will continue to lead the business together with the current management team.

ICG acquired a 76.4% stake in Esperi from listed Finnish GP CapMan Buyout in May 2016. CapMan received €6.1m in cash from the sale.

Previous funding
CapMan Buyout acquired a majority stake in Esperi through an SBO from a consortium of PE owners led by Unicus in 2010. The company management reinvested alongside the GP, although it reduced its shareholding, while the Finnish Red Cross sold its stake. The investment was made from CapMan Buyout IX fund, a €294.6m vehicle raised in 2010.

Company
Founded in 2001 and headquartered in Helsinki, Esperi provides a range of residential care services to the elderly and individuals with special needs. It employs a staff of 6,300 and has 8,000 residents. The company generated revenues of around €265m in 2018, while its debt amounted to €227m, according to press reports.

People
Ilmarinen – Mikko Mursula (executive vice-president).
Esperi – Stefan Wentjärvi (CEO).