ORPEA: Two Additional Acquisitions Creating Substantial Value

  • ANAVITA (932 BEDS): ORPEA NOW NO. 1 IN THE CZECH REPUBLIC
  • DR. DR. WAGNER1 (1,812 BEDS): ORPEA EXTENDS ITS LEADERSHIP IN AUSTRIA

TOTAL NETWORK OF 79,838 BEDS, CLOSE TO 60% OUTSIDE FRANCE

PUTEAUX, France--()--Regulatory News:

The ORPEA group (Paris:ORP), a leading European provider of long- and medium- term care (nursing homes, post- acute and rehabilitation hospitals, psychiatric hospitals, and homecare services), is today announcing two major acquisitions in the Czech Republic and Austria.

ORPEA now no. 1 in the Czech Republic following the acquisition of Anavita

Founded in 2008, Anavita is one of the leading operators of nursing homes in the Czech Republic. It has a network of 6 facilities with 932 beds (including a 256-bed facility under construction).

These large (average of 155 beds) and recently built (2.5 years old on average) nursing homes are located in major cities. Furthermore, the Anavita brand has established a very strong reputation in the Czech Republic for the quality of the long-term care it provides, especially in neurodegenerative illnesses.

This acquisition represents an exceptional opportunity in the country in view of the expertise of its management, which will retain its operational duties within the Group, the size of its network of facilities, and the calibre of its newly built and wholly-owned real-estate assets. Anavita’s revenues totalled €7.0 million in 2016, and are expected to double once all six facilities will be opened and reached maturity. ORPEA has acquired Anavita with effect from 1 April 2017, and it will be consolidated from the same date.

Following this deal, which was agreed on attractive terms, ORPEA is now the number one private nursing home operator in the Czech Republic, with 1,716 beds (including 830 under construction) in 12 facilities. By harnessing its high-calibre network and its experienced and highly reputed local team, the Group will be able to actively pursue its expansion, including by setting up new facilities.

ORPEA extends its leadership position in Austria with the acquisition of the Dr. Dr. Wagner group

Founded by Dr. Wagner, its current manager, the Dr. Dr. Wagner group is a leading player in the Austrian market for healthcare institutions, with a presence in post-acute and rehabilitation hospitals and in nursing homes. The Group now possesses 18 facilities representing 1,812 beds across 5 regions of Austria. This network boasts all the characteristics sought by ORPEA – a very good reputation (patient and resident satisfaction rate of 96%), an integrated and diversified range of long- and medium- term care facilities, with multiple specialisations, including post-acute care and rehabilitation, recently-built premises (new builds or refurbishments over the past 10 years), a real-estate ownership rate of 80%, and attractive locations.

The Dr. Dr. Wagner group posted revenue of €60.0 million in 2016. The transaction remains subject to clearance by the anti-trust authorities.

1 Dr. Dr. Wagner is the official name of this Austrian group

This acquisition will round out SeneCura’s geographical coverage of Austria and extend its range of care and services across the entire spectrum of long- and medium- term care.

Via its SeneCura local subsidiary, ORPEA has bolstered its leadership in the Austrian private nursing home sector, where it now operates 77 facilities with 6,807 beds (279 under construction).

Two value-creating acquisitions

With these two deals, ORPEA’s network will grow to 79,838 beds at 775 facilities in 10 countries. Overall, 59% of its beds are now located outside France.

An updated target for full-year 2017 revenues incorporating these acquisitions will be provided in the interim revenue report in July 2017.

Yves Le Masne, Chief Executive Officer of ORPEA, commented: “The deals for Anavita and Dr. Dr. Wagner are a perfect illustration of its value-creating strategy of acquisitions focused on:

  • high-quality assets boasting a first-class reputation
  • ownership of almost all the real-estate portfolio
  • a perfect geographical fit with existing networks

ORPEA is establishing strong positions in countries with major growth potential through deals that scrupulously meet its financial criteria and quality standards for investments. They will also help to accelerate its organic growth. Following the acquisition of Spitex in Switzerland at the beginning of the year, ORPEA is maintaining its brisk pace of international expansion. This will continue over the coming months, with new facilities being created and further selective acquisitions”

Next press release: Q1 2017 revenues
2 May 2017 after the market close

About ORPEA (www.orpea-corp.com)

Founded in 1989, ORPEA is a European leader in integrated Long-Term Care and Post-Acute Care, with a network of 775 healthcare facilities, with 79,838 beds (9,371 of them under refurbishment or construction), including:

  • 33,122 beds in France at 357 facilities (2,409 beds under refurbishment or construction);
  • 46,716 beds outside France (Germany, Austria, Belgium, China, Spain, Italy, Czech Republic, Poland and Switzerland) at 418 facilities (6,962 beds under refurbishment or construction).

ORPEA is listed on Euronext Paris (ISIN: FR0000184798) and member of SBF 120, STOXX Europe 600, MSCI Small Cap Europe and CAC Mid 60 indices.

Contacts

Investor Relations:
ORPEA
Yves Le Masne
CEO
Steve Grobet
Investor Relations Officer
+33 (0)1 47 75 74 66
s.grobet@orpea.net
or
Investor and Media Relations:
NewCap
Dusan Oresansky / Nicolas Merigeau, +33 (0)1 44 71 94 94
orpea@newcap.eu

Release Summary

ORPEA announces two additional acquisitions creating substantial value

Contacts

Investor Relations:
ORPEA
Yves Le Masne
CEO
Steve Grobet
Investor Relations Officer
+33 (0)1 47 75 74 66
s.grobet@orpea.net
or
Investor and Media Relations:
NewCap
Dusan Oresansky / Nicolas Merigeau, +33 (0)1 44 71 94 94
orpea@newcap.eu