PAI Partners enters into exclusive negotiations for the sale of a majority stake in DomusVi

8 June 2017

PAI Partners (“PAI”), a leading pan-European private equity firm, announces today that it has entered into exclusive negotiations with Intermediate Capital Group (“ICG”) and Sagesse Retraite Santé (“SRS”) for the sale of a majority stake in DomusVi (“DomusVi”, the “Group”), the #3 European private operator of nursing homes.

Created in the 1980s by Yves Journel, DomusVi is the #3 private player in elderly care in Europe with leading positions in France and in Spain. The Group is present in all areas of elderly care including Alzheimer and Parkinson units, home care and also operates mental care units in Spain. As of March 2017, DomusVi operates 334 facilities for an average number of 29,829 beds. In the proposed deal, ICG would partner alongside SRS, an investment vehicle controlled by Yves Journel, who would re-invest in the new capital structure.

Stefano Drago, Partner at PAI Partners, commented: “Under PAI’s ownership, the company has transformed from a French nursing home operator into a European leader across all areas of elderly care. We believe the fundamentals of the nursing home market in Europe will remain very supportive and the fragmented market continues to offer many external growth opportunities. We are very grateful for the last three years of fruitful cooperation with the management team of Domus Vi, led by Aymar Hénin, and with Yves Journel, founder of DomusVi. We wish everyone at the company success for this exciting new phase for the Group.”

Aymar Hénin, Chief Executive of DomusVi, said: “I would like to thank PAI for its continued support and commitment to our business. PAI have been a great partner and have been instrumental in our growth and development. Our group has undergone a transformation during their ownership, becoming a European leader in elderly care. We now look forward to starting our next phase of development with ICG and SRS.”

Hadj Djemai, Head of Southern Europe at ICG, commented:” ICG has been a long term partner of DomusVi and is delighted to keep on accompanying the Group’s founder Yves Journel and the management team lead by Aymar Hénin going forward. ICG is very excited by the growth prospects of the Group and will actively support its development, notably in France, in Spain and in the rest of Europe.”

Yves Journel, majority shareholder of SRS and founder of DomusVi, commented:

“Our journey with PAI was outstanding. Committed to DomusVi, I am confident in its future provided the company’s qualities, its employees and its management. With ICG, who we have known since 2003, we have an ideal shareholder for pursuing the company’s growth path to build a major European player dedicated to elderly care.”

Completion of the transaction is subject to consultation with DomusVi's Works Council and satisfactory clearance from relevant competition and regulatory authorities.

PAI was advised by Rothschild, BNPP and Goldman Sachs. Lazard was acting as financial advisor to ICG and SRS. SRS was also advised by Clearwater International.

About PAI Partners

PAI Partners is a leading European private equity firm with offices in Paris, London, Luxembourg, Madrid, Milan, Munich, New York and Stockholm. PAI manages €8.3 billion of dedicated buyout funds. Since 1994, the company has completed 61 transactions in 11 countries, representing c. €41 billion in transaction value. PAI is characterised by its industrial approach to ownership combined with its sector-based organisation. They provide the companies they own with the financial and strategic support required to pursue their development and enhance strategic value creation.

www.paipartners.com

About ICG

ICG is a specialist asset manager with over 28 years' history.

ICG manages €23.8 billion of assets in third party funds and proprietary capital, principally in closed end funds. ICG’s strategy is to grow the firm’s specialist asset management activities to deliver increased shareholder value. ICG’s goal is to generate income and consistently high returns whilst protecting against investment downside for its fund investors. ICG seeks to achieve this through its expertise in investing across the capital structure. ICG combines flexible capital solutions, local access and insight with an entrepreneurial approach to give the firm a competitive edge in its markets. ICG operates across four asset classes – corporate, capital market, real asset and secondary investments. In addition to growing existing strategies, ICG is committed to innovation and pioneering new strategies across these asset classes where the market opportunity exists to deliver value to its fund investors and increase shareholder value.

ICG is listed on the London Stock Exchange (ticker symbol: ICP) and provides investment management and advisory services in support of its strategy and goal through a number of regulated subsidiaries, further details of which are available at: www.icgam.com

About SRS

SRS is a family holding dedicated to the healthcare industry. Founded in 1983 by Yves Journel, the firm has invested in nursing homes, private clinics and home care as well as in related real estate. With over 40,000 beds and 35,000 employees, SRS portfolio companies offer a full range of health care services including medical and surgical as well as rehabilitation and elderly care. Other than DomusVi, the company’s main assets include stakes in Almaviva, the No. 5 player in French private hospitals, Elivie, a large French home care provider and Groupe Sedna Santé, a provider of nursing homes in Canada and market leader in Quebec.