Palamon sells Sarquavitae to PAI portfolio company

According to a statement, Palamon exited the business after a seven-year holding period and reaped €140m in proceeds for a 3x money return, in a deal based on a €440m enterprise value for the Spanish business.

Prior to the deal, Palamon held a 49% stake, while dedicated healthcare investor G Square Capital had a 18% stake, Grupo Confide owned 28% and the management team 5%.

HomeVi acquired the business via its sister company, GeriaVi, in a deal expected to close in the first quarter of 2017. It intends to finance the acquisition through a combination of equity and debt.

The present deal follows GeriaVi's acquisition of Spain's other large elderly care operator Geriatros from Magnum Capital in July 2015. The private-equity-owned GeriaVi is understood to be looking for consolidation opportunities across the Spanish elderly care sector through the combination of the two companies.

HomeVi fully owns French elderly care service provider DomusVi, which has a presence across both the French and the Spanish markets. The business manages 227 nursing homes, 16 residential facilities, four mental care facilities and 47 home care agencies. To date, the group employs a staff of 16,000.

Previous funding
In May 2009, Palamon bought Grupo SAR via its Palamon European Equity II Fund, alongside G Square. Subsequently, the investor syndicate fully acquired Spanish competitor Mapfre Quavitae from Mapfre and Caja Madrid for €30m in December 2010 to merge with Grupo SAR. The group was renamed Sarquavitae.

In December 2015, KKR provided a €150m round of debt refinancing to the business.

Company
Established in 2009, Sarquavitae is a Barcelona-based health and social services operator focused on nursing homes and domiciliary care services.

The company has a workforce of 12,000 employees and manages 109 facilities, which include 72 nursing homes and healthcare centres, 16 disability care centres, and 19 daycare homes and hospitals. Moreover, the company provides domiciliary assistance and healthcare services.

During the 2015 fiscal year, Sarquavitae posted pro forma €310m in revenues with a 9.4% EBITDA margin.

People
PAI Partners – Ricardo de Serdio (partner).
Palamon Capital Partners – Julian Carreras (partner).

Advisers
Equity – Willkie Farr & Gallagher (legal).

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