Hg Capital has announced that it has agreed the sale of Casa Reha, a leading private German provider of elderly care services, specialising in high quality, assisted living, to Euronext-listed Korian, a leading European provider of elderly health care services. Completion is subject to regulatory approval.
Hg Capital Trust will realise cash proceeds of approximately £7.9m on completion of the transaction. This represents an uplift of £3.5m or 77% over the carrying value of £4.4m in the NAV of the Trust at 31 October 2015 which was based on the Directors’ valuation as at 30 June 2015.
Based on the 31 October 2015 reported NAV, and all subsequent reported transactions, the pro-forma NAV of the Trust is expected to increase to £488.9m or 1,309.9 pence per share (an increase of 9.2 pence). The Trust’s liquid resources available for future deployment are estimated to be £53.9m (11% of the pro-forma 31 October 2015 NAV).
Founded in 1995, Casa Reha is one of the leading German providers of care services for the elderly and plays an important role in addressing the ageing population and the increasing demand for tailored care concepts. The company has a demonstrable track record of operating and opening care homes while simultaneously developing resident-focused services. The Company’s current portfolio consists of 70 nursing homes with more than 4,000 employees and cares for c. 10,000 elderly residents. Among the operated facilities, seven are in ramp-up and represent more than 900 beds. Finally, Casa Reha has a project portfolio of 782 beds to be created.
During its ownership, HgCapital has supported Casa Reha in further building its leading position as a high quality provider of care, which facilitated the opening of a significant number of new homes, an increase in occupancy as well as a significant improvement in quality as evidenced by external inspection ratings.
Following completion of this transaction, only two pre-2010 investments now remain within the HgCapital 5 (2006) fund portfolio: Achilles and SFC-Koenig.
HGT : Hg selling Casa Reha