Medica
| Location: | Deal size: |
|---|---|
| France | €330m |
Médica is one of Europe’s largest private operators of nursing homes with over 8,300 beds in more than 100 facilities spread throughout France and Italy. It provides nursing home facilities to individuals, typically over 85 years of age, requiring dependence-related or post-operative care. Bridgepoint acquired the group in a privatisation from ICADE, the property arm of the French State’s Caisse des Dépôts et Consignations in July 2003 in a transaction totalling €330 million. The company operates in a highly fragmented sector in a growing market, fuelled by an ageing population and rising life expectancy rates. Bridgepoint’s initial assessment suggested that both the business and its sector were attractive for several reasons: favourable demographic trends that will see demand increase in the medium term, a market open to consolidation and strong operational capability of its management team to integrate potential add-on acquisitions.
In June 2005, Médica acquired Aetas, a small group of nursing homes in Italy, a market with similar demographic and growth characteristics to that of the French market. The principal objective was to use the acquisition as a platform investment from which to play an active part in the consolidation of the highly fragmented Italian market. This was complemented by a series of smaller acquisitions in France designed to improve geographical coverage and to increase total number of beds. In addition, Bridgepoint worked with management to strengthen the company’s sales and marketing, to introduce new performance indicators for the business, including yield optimisation and cost control, and to turn around under-performing centres. In July 2006 Médica was sold in a transaction which valued the business at €750 million with Bridgepoint achieving a significant money multiple on its original investment.