MCH in Geroresidencias-La Saleta exit

As part of the deal, the company's shareholders have sold a total 95.47% stake to Belgian corporate Armonea. Prior to the transaction, MCH owned a 68% stake, which was in the portfolio of the AC Premier Capital II fund.

At the time of the acquisition in 2007, the vehicle was managed by the Spanish private equity house AC Desarrollo, but in February 2016 MCH acquired the whole vehicle's portfolio in a direct secondaries deal.

According to a source familiar with the situation, the deal was based on an enterprise value of €90m, which included €20m of debt and €70m of equity. It generated a 7.6x return on the original investment.

According to a statement, the company acquired nine centres across Spain and expanded its business into new services with private equity backing, posting a 4.5x and 4.4x increase with regards to revenues and EBITDA, respectively.

Previous funding
In April 2007, AC Desarrollo acquired a 15% stake in the business via its AC Capital Premier II find. In April 2010 AC Desarrollo increased its stake up to 85%, while the management board retained a 15% stake.

In February 2016, MCH acquired the whole portfolio of the AC Premier Capital II fund, including the stake in Geroresidencias.

Company
Founded in 1997 and headquartered in Valencia, the company manages 28 residences and day-care centres across Spain and employs 1,800 people.

People
MCH Private Equity – José Manuel de Bartolomé (partner).
Geroresidencias-La Saleta – Fernando Ruiz (CEO).

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• Topics
• Exits
• Healthcare
• Southern Europe
• Spain
• MCH Private Equity
• AC Desarrollo (Ahorro Corporación)