14 August 2013
STAR Capital Partners announces the sale of the Alloheim Group
STAR Capital Partners (“STAR”) announces the signing of a definitive agreement for the sale of Alloheim Senioren-Residenzen (“Alloheim” or “Company), a leading provider of residential care for the elderly in Germany to The Carlyle Group.
STAR had identified residential care as an attractive opportunity in Germany due to the demographic and socio-economic trends driving long-term demand for care in the well-funded German market. The German care home market is characterised by significant fragmentation and the investment in Alloheim created a strong platform from which STAR could drive value creation through a combination of acquisition and new build activity.
Having recruited some of the leading managers in the sector, STAR and management then identified and acquired the business in 2008 which, at that time, comprised 13 facilities totalling c.1,500 beds and c.250 assisted living apartments across Germany. With the financial and operational support of STAR, Alloheim today operates 49 nursing homes, with approximately 6,000 beds and more than 4,000 employees providing a full range of nursing home services, i.e. stationary care, ambulatory care, assisted living and specialised nursing care. As a result of this investment, EBITDA has grown at a CAGR of c.35% since 2008 and the company is consistently recognised for the quality of its care.
Roy Mani, Partner of STAR, commented,
"We had identified the German residential eldercare market as particularly robust due to its underlying demand drivers and strong insurance-based reimbursement system, which positively differentiates it to other countries. Alloheim represented a real opportunity to create value through a “buy and build” strategy focused on delivering high quality care for residents as well as good returns to our investors. We achieved this through careful investment and operational excellence while taking care to ensure that the business had a sustainable and appropriate funding structure. The management team, led by Rainer Hohmann and Thomas Kupczik, has executed this strategy well and growth targets set in our investment case have been met. We wish the management team and all stakeholders in the business well as it enters a new phase of development under Carlyle’s ownership."
Rainer Hohmann, CEO of Alloheim added:
“When STAR invested in the business we knew we had found an investor that would support the strategic direction of the company but also be highly sensitive to the needs of our residents and quality of care they require. We thank them for their expertise, guidance and support over the past 5 years and are looking forward to working with Carlyle to build on the success achieved to date.”
The sale is subject to regulatory approval. STAR was advised by Rothschild for M&A advice and Arqis for legal advice.