CVC to Purchase the Universidad Alfonso X for c. €1.1bn

26 March 2019 – El Confidencial

Following Permira’s acquisition of Universidad Europea de Madrid in December for €770 million, CVC Capital Partners is following suit. The private equity firm is on the verge of completing negotiations to buy Universidad Alfonso X El Sabio (UAX), also in Madrid.

The consideration for the operation could amount to €1.1 billion, equivalent to 14 x EBITDA, an investment record that reflects the huge interest in the sector from private equity firms.

The main shareholders of UAX are Jesús Núñez, who owns a 72% stake and Manuel Piñera Gil Delgado, who owns 15.67%, together with his ex-wife María Teresa Gallego García, heir of the alcoholic beverage company DYC. Another 7% is owned by their nephew José Jaime Núñez.

Currently, the most significant investments owned by CVC Capital Partners in Spain are its 20% stake in Naturgy, worth €3.8 billion, which it shares with Corporación Financiera Alba; its 25% share of CLH worth €1 billion; Deoleo, the olive oil company that is facing serious financial problems; and Lecta, formerly Torraspapel.

Jesús Núñez created UAX in 1993 after reaching an agreement with the Town Hall of Villanueva de la Cañada, which granted him the right to use 1 million m2 of land for 75 years on which to build the campus. The university now educates 15,000 students per year, generates a turnover of €104 million and makes a net profit of €45 million.

Original story: El Confidencial (by Agustín Marco)

Translation/Summary: Carmel Drake

Vitalia Buys 2 Plots for the Construction of Private Nursing Homes

5 February 2019 – Alimarket

The nursing home management group Vitalia Plus has confirmed to Alimarket its intention to continue incorporating new projects and acquiring residences in operation in Spain. In recent days, Vitalia has signed agreements for the purchase of two plots of land in Valencia and Salamanca, cities where the firm has not had a presence until now. In the case of Salamanca, Vitalia is planning to build a private nursing home in the city with 130 beds and 30 day spaces. Meanwhile, in Valencia capital, the group will build 128 residential spaces and 30 day spaces. Two other plots are expected to be added to those two new projects, whose purchase the group is currently negotiating in two other Spanish cities.

The new projects form part of a second phase of investments planned by Vitalia, worth more than €100 million, which the group will finance with own funds (more than €50 million) and a €50 million loan, requested recently from the European Investment Bank (….).

Currently, besides the new homes announced in Valencia and Salamanca, Vitalia has 22 other nursing homes in different phases of completion – including the Vitalia Expo in Zaragoza, Vitalia Toledo and the expansion of one of its centres in Teruel (…) – which contain 3,443 beds in total (3,701 beds including the new projects in Valencia and Salamanca). These centres will be added to the 44 nursing homes that the group manages in Spain, with 6,461 beds (…).

Since March 2017, the group Vitalia Plus has been controlled by the investor CVC Capital Partners (which owns an 80% stake), whilst the investor Portobello Capital owns 10% and the executive President and founder José María Cosculluela Salina holds the remaining 10%. In 2017 – the most recent data available – Vitalia recorded a consolidated turnover of €91.05M with 2,850 workers.

Original story: Alimarket (by Eva de Frutos)

Translation: Carmel Drake

Portobello Capital Buys Blue Sea Hotels For c. €70M

9 March 2017 – El Economista

The private equity fund Portobello is on a roll. According to sources consulted by El Economista, the firm has purchased the hotel chain Blue Sea for around €70 million.

The transaction involves the acquisition of 17 hotel establishments, located mainly in the Canary Islands and the Balearic Islands, plus two that the hotel chain owns in Morocco (one in Berkane and one in Marrakech). The hotel chain’s turnover amounts to around €50 million. Sebastiá Catalá will continue to lead the company – he will also retain his 5% stake – meanwhile, Portobello has recruited Franciso Gimena (ex-Globalia) for the role of Vice President.

As a result of this operation, the fund controlled by Íñigo Sánchez-Asiaín, Juan Luis Ramírez, Ramón Cerdeiras and Luis Peñarrocha will make its debut in the tourist sector, a business that it has been interested in for a while, given the positive performance of the market in Spain. In this regard, the country received 75.3 million tourist visitors last year – which represents an increase of 9.9% with respect to 2015 – of which, almost 25% opted to visit the Balearic and Canary Islands, where Blue Sea has its star hotels. The hotel chain also has a presence in Madrid, Torremolinos (Málaga) and Benidorm (Alicante).

PE house on a roll

Portobello Capital is enjoying one of its best periods since it was founded in 2011 by former partners of Ibersuizas. Its first investment vehicle has been invested in its entirety in record time – in fact, the firm has received several awards in recent months for its operations – and it has now completed several divestments, such as of its geriatric business (Vitalia Plus), which it sold on Monday to the fund CVC Capital Partners for between €200 million and €250 million.

Original story: El Economista (by Araceli Muñoz)

Translation: Carmel Drake