French nursing home operator Korian has agreed to buy German peer Casa Reha as it seeks to increase its presence in Europe’s biggest economy, it said on Tuesday.
While a purchase price was not disclosed, two people familiar with the matter said the deal valued Casa Reha at 300-350 million euros ($321-$374 mln).
With 70 nursing homes and 270 million euros in revenue, Casa Reha is Germany’s third-largest nursing home operator.
The industry is likely to grow because of the ageing population, although nursing home operators face the challenge of maintaining care quality while keeping costs under control.
“The acquisition of Casa Reha is a major step towards achieving our target revenue of 3 billion euros,” said Korian Chief Executive Yann Coleou, adding that he expects 5 million euros in annual synergies.
Private equity group HgCapital bought a majority stake in Casa Reha in 2007, while former owner Advent had retained a minority holding.
Lazard and Societe Generale advised sellers HgCapital and Advent on the deal, while BNP advised Korian.