- ORPEA becomes No. 1 in Ireland
- ORPEA becomes the leader in Spain in post-acute,
rehabilitation and psychiatric hospitals
- Revenue at maturity: over €210m
2021 revenue growth target raised to at least +7.5%
Regulatory News:
The ORPEA Group
(Paris:ORP), one of the world's
leading players in comprehensive long-term care (nursing homes,
medium-stay and psychiatric hospitals and home care), is continuing
its development thanks to six new targeted acquisitions in
Europe.
Ireland: ORPEA becomes the market
leader with the acquisition of the FirstCare Group, the iconic
Dublin facility, Belmont House, and the remaining 50% of Brindley
Healthcare
Established in 1994 and owned
by its founder, FirstCare is the 4th largest operator of nursing
homes in Ireland with 8 facilities representing 857 beds, including
2 sites (306 beds) under construction.
The facilities are new, in
excellent locations, particularly in Dublin, with over 90% of
single rooms. Some of the facilities may also be extended and, more
importantly, specialised, particularly in post-acute care and
rehabilitation.
ORPEA is also acquiring 4
buildings out of the 8 facilities.
In 2020, FirstCare posted
revenue of €30 million and should reach €50 million with the
opening of the 2 sites under construction. FirstCare1 will be
consolidated as of 1 July 2021.
ORPEA has also acquired the
Belmont House nursing home (157 beds), the most prestigious
facility in Dublin, located in one of the most sought-after areas
of the Irish capital and offering high-end services.
These operations, carried out
in conjunction with the purchase of the 50% stake not held in
Brindley Healthcare and taking into account the acquisition of TLC
in January 2020, will enable ORPEA to become the leading private
player in Ireland with a total network of more than 2,284 beds (25
facilities), representing revenue of more than €135m at
maturity.
In a country where the supply
is insufficient with nearly 10,000 beds to be built by 2030, the
ORPEA Group now has a solid development platform with a first-class
reputation, allowing it to pursue its organic development in
nursing homes, post-acute care and rehabilitation and mental
health, offering the best quality of care and services to further
enhance the safety and well-being of patients, residents and
employees.
Switzerland: Acquisition of Sensato
AG
Founded in 2008, Sensato AG is
one of the leading private Swiss groups with a network of 7 modern
facilities (443 beds) in the north and northwest of the country
(cantons of Aargau, Bern and Thurgau) and a dual offering of
nursing homes and assisted living facilities, providing strong
geographical complementarity as well as the potential for synergies
with the existing ORPEA care network (Senevita) in
Switzerland.
The acquisition of Sensato AG
perfectly matches ORPEA's value creation criteria:
- a reputation for quality and
excellence in care;
- modern buildings, built less than 5 years ago and in excellent
locations;
- almost a third of the network
is in the roll-out phase, thus offering significant potential for
increasing business volume and optimising operational
performance.
In 2020, Sensato AG posted
revenue of €20 million. It has been consolidated since 1 May
2021.
Thanks to this acquisition,
ORPEA has strengthened its position as the second largest player in
Switzerland with a total network of 47 facilities and 4,367
beds.
Spain: strengthening of the global care
offering in three business segments with the acquisition of Hestia
Alliance and seven Sanitas facilities
Hestia Alliance Group, founded
in 1992, offers a comprehensive range of post-acute care,
palliative care, long stays and mental health services in 14
facilities, 60% of which are located in Madrid and Barcelona and
14% in the Balearic Islands. The Hestia network, one of the largest
in the country with 2,131 beds, has an excellent reputation for
quality care and offers strong complementarity with the ORPEA
network in Spain. The management team will remain linked to the
Group and will continue to share its know-how and experience with
ORPEA in Spain.
Hestia posted revenue of €70
million in 2020. As part of this transaction, ORPEA has also
acquired 7 buildings. Hestia2 will be consolidated at the end of
2021 or, at the latest, in early 2022.
This acquisition thus
significantly strengthens ORPEA’s positioning in the post-acute
care and rehabilitation and mental health sectors in Spain and
provides a new development platform for these activities, for which
there is a growing need.
In addition, ORPEA has
acquired 7 facilities (838 beds) from Sanitas, a subsidiary of
Bupa, a British health insurance and care group, which will
complete the Group's current network of Premium nursing homes. Two
of these facilities are open (188 beds) and five are under
construction and redeployment in Madrid, Barcelona, Logrono and San
Sebastian, representing total potential revenue of €25m at
maturity.
Upon completion of these two
operations, ORPEA will be active in the Spanish market with its
three complementary business segments, operating 87 facilities
representing 14,300 beds.
6 value-creating acquisitions
representing more than 4,700 beds and over €210 million in
revenue
These six acquisitions
perfectly illustrate the uniqueness of the Group's external growth
strategy. They perfectly complement the geographical network and
the care pathway in the various countries and have common
characteristics, namely:
- quality assets, with most of
them being recent, in strategic locations in major European
cities;
- an excellent reputation with
regard to the quality of care provided to residents and patients at
local or national level;
- medium-sized groups, which
are easier to integrate and meet ORPEA's strict financial
criteria.
In just six months, thanks to
the experience of the local management teams and their
long-standing involvement in the sector, the group has thus been
able to seize the best opportunities, representing 42 facilities,
or 4,713 beds, of which 20% are under development. These
acquisitions represent additional full-year revenue of over €210
million at maturity, i.e. within the next 2 to 3 years, with
significant leverage on profitability.
ORPEA is thus consolidating
its position as world leader in long-term care, with 1,156
facilities, representing 116,514 beds, of which 90,155 are open,
and a record growth pipeline of 26,359 beds under
construction.
2021 revenue growth target raised to
> +7.5%
The strong upward trend in
occupancy rates across all geographical zones, which began in March
and gathered pace in June, combined with the contribution of the
new selective acquisitions, has led the Group to raise its annual
revenue growth target for 2021 to more than 7.5%, or at least
€4,215m (compared to the previous target of at least 6%, or
€4,155m).
Yves Le Masne, Chief Executive Officer
of ORPEA, concludes:
"The acquisitions of
FirstCare, Belmont House, Sensato AG, Hestia and part of the
Sanitas facilities have enabled ORPEA to achieve leading positions
or to strengthen its care offering in markets with growing needs,
requiring the development of an offering that meets the highest
standards of quality care. With these selective acquisitions, ORPEA
is once again demonstrating the strength of its decentralised model
and its ability to identify value-creating opportunities thanks to
the experience of its teams in each of its geographical
zones.
Bolstered by this momentum and
a rapid recovery in occupancy rates, the Group can now raise its
2021 revenue target to more than €4,215 million and, above all,
further secure sustained growth for the coming years.
At the same time, ORPEA is
continuing its long-term growth momentum on a global level through
selective expansion and the creation of new facilities in countries
with strong purchasing power, and which require the deployment of a
quality offer."
Next press
release: H1 2021 revenue 20 July 2021 after market close
About ORPEA
(www.orpea-corp.com)
Founded in 1989, ORPEA is one
of the major world leaders in comprehensive long-term care, with a
network of 1,156 facilities comprising 116,514 beds (26,359 of
which are under construction) across 23 countries, which are
divided into five geographical regions:
- France Benelux: 586
facilities/49,207 beds (5,672 of which are under
construction)
- Central Europe: 268
facilities/28,419 beds (5,828 of which are under
construction)
- Eastern Europe: 142
facilities/15,255 beds (4,101 of which are under
construction)
- Iberian Peninsula/Latin
America: 158 facilities/23,108 beds (10,373 of which are under
construction)
- Rest of the world: 2
facilities/525 beds (385 of which are under
construction)
ORPEA is listed on Euronext
Paris (ISIN code: FR0000184798) and is a member of the SBF 120,
STOXX 600 Europe, MSCI Small Cap Europe and CAC Mid 60
indices.
1 Subject to the approval of the Anti-trust Authorities 2
subject to the approval of the Anti-trust Authorities
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210629005931/en/
Investor Relations ORPEA Steve Grobet EVP Communication and Investor
Relations s.grobet@orpea.net Benoit Lesieur Investor Relations Director
b.lesieur@orpea.net
Investor Relations NewCap Dusan Oresansky Tel.: +33 (0)1 44 71 94 94
orpea@newcap.eu Media
Relations Image 7 Rebecca David Tel.: +33 (0)6 04 74 83 69
rdavid@image7.fr
Charlotte Le Barbier
Tel.: +33 (0)6 78 37 27 60
clebarbier@image7.fr
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