French nursing home operator Orpea has signed an agreement to acquire the entirety of the Mediter Group in France as well as a 49% stake in the Medibelge Group in Belgium, representing a total of 4,866 beds on 57 sites, including 3,810 beds in France and 1,056 beds in Belgium. The transaction price amounts to EUR 129 mln.

French nursing home operator Orpea has signed an agreement to acquire the entirety of the Mediter Group in France as well as a 49% stake in the Medibelge Group in Belgium, representing a total of 4,866 beds on 57 sites, including 3,810 beds in France and 1,056 beds in Belgium. The transaction price amounts to EUR 129 mln.

The company has also an option to buy the remaining stake in Medibelge, representing a further 1,100 beds. The assets are being divested by holding companies belonging to Philippe Austruy, a well-known professional in the sector who was behind the creation of Generale de Sante and Medidep.

The transaction involves 3,263 operational beds, with a number of newly-built facilities still in a ramp-up phase; 667 beds to be renovated; and 936 beds to be built. 'As well as beds that are already operational, this acquisition represents considerable potential for growth in terms of both revenue and profitability and in terms of value creation, with facilities being renovated and other facilities to be built,' Orpea said.

In time, revenues from the operation are forecast to amount to EUR 250 - 280 mln.

This acquisition will be financed with the launch of a EUR 114 mln capital increase and EUR 15 mln in cash. Following this operation, which should be finalised by the end of 2010, Philippe Austruy will hold an 8.3% stake in Orpea. 'Thanks to this acquisition, Orpea now has a unique position in Europe to pursue its development, and I would be very happy to participate in this as a director,' he said.