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PAI Buys SARquavitae, The Nursing Home Giant

24 October 2016 – Expansión

The venture capital fund PAI Partners is about to take a new step in the consolidation process that the nursing home industry is currently undergoing with the acquisition of SARquavitae, the main operator in the sector in Spain, controlled until now by the British fund Palamon. This purchase will happen imminently and comes after a period of exclusive conversations, which began before the summer and which has have their ups and downs, even bordering rifts between the parties on occasion, say sources close to the deal.

The sellers (which, in addition to Palamon, include the Gallardo family and the Confide Group, owned by the Raventós family) have resolved the discrepancies that they had regarding how the sale should proceed. In this way, they have managed to reach an understanding with PAI, which will allow them to complete an agreement, say the same sources.

As a result, PAI will acquire 100% of SARquavitae’s shares. Almost 70% of the shares are currently owned by a company that is in turn owned by Palamon and the Gallardo family, in which the fund is the majority shareholder. The rest of the capital belongs to the Confide Group.

The operation has been based on a valuation of the company that amounts to €500 million, according to the sources. SARquavitae owns 107 centres across the country. Its turnover amounted to €280 million last year and its EBITDA was around €40 million.

Integration

The acquisition of SARquavitae strengthens PAI’s plans to establish itself in the industry for elderly support in Spain. The French fund acquired another player in the nursing home market, Geriatros, last year for around €300 million from the private equity fund Magnum Capital.

Since then, PAI has been actively looking for new investments through which to progress in establishing itself in the sector.

In fact, a few months ago, it participated in an auction for the Amma Group, the nursing home and care centres owned by CaixaBank, but the French company Maisons de Famille ended up winning that bid. Now, the acquisition of SARquavitae opens the door to the integration of that firm with Geriatros. According to sources, PAI intends to study that project more closely.

Original story: Expansión (by Mamen Ponce de León)

Translation: Carmel Drake

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