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Achieving a healthy transformation into a key international elderly care provider

160%

EBITDA growth

Market position in Spain

Market position in Europe

Overview

Key facts

Sector

Healthcare

Headquarters

France

Investment date

September 2014

Ownership

55.5%

Exit date

July 2017

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DomusVi is a major privately owned French care home operator that offers a comprehensive range of services for the elderly. The group operates across all segments of the sector, including medical and non-medical nursing homes, residential services and home-care services.

PAI acquired DomusVi through a primary LBO in September 2014, with the ambition of transforming a purely French business into an international player with a diversified revenue stream and a solid operational model. At the time of acquisition, DomusVi was the third-largest private operator in the nursing home sector in France.

The acquisition was supported by PAI’s strong understanding of the business, as well as a trust-based relationship and alignment of strategic vision with Yves Journel, the group’s founder, who reinvested alongside PAI.

Capturing market opportunities

PAI’s decision to acquire DomusVi was underpinned by favourable long-term demographic and economic trends across Europe, the opportunity for further consolidation in a fragmented market and clear potential for operational improvements.

The French nursing home market benefits from strong demographic tailwinds, with the population aged 85 and over expected to grow at 3% per year to 2018. The private sector operates within a highly regulated, authorisation-controlled framework. With the top three private operators accounting for less than 10% of the total market, the elderly care market in France remains highly fragmented and offers significant consolidation opportunities.

Transforming DomusVi

Under PAI’s ownership, DomusVi implemented an active consolidation plan, becoming a leading operator in the French home-care segment and entering the attractive Spanish market.

In just three years, the group was transformed from a purely French provider into the third-largest elderly care operator in Europe.

This transformation was supported by PAI’s experience in healthcare services, as well as the strong local presence of PAI’s Spain Team, which played a key role in executing this expansion.

An active consolidation strategy in Spain

With the support of PAI and close collaboration between the Healthcare and Spanish teams, DomusVi expanded its footprint in Spain in 2015 through the acquisition of Geriatros, the country’s third-largest nursing home operator. This added 45 nursing homes, 24 day-care centres and four mental healthcare facilities to the group’s network.

Further expansion followed, including the acquisition of Grupo SAR, the Spanish market leader, in early 2017. Grupo SAR operates 89 nursing homes and is also active in adjacent services such as home care, tele-assistance and mental healthcare.

Development in China

DomusVi also developed an elderly care presence in China, through a joint venture with a local partner.

China represents a significant and rapidly growing market, with the population aged over 60 having already surpassed 300 million and expected to reach approximately 390 million by 2030. The country faces a growing need to develop infrastructure to support this demographic shift.

DomusVi benefits from France’s strong reputation in elderly care, as well as its expertise across the full value chain, from nursing homes to home care and residential services, positioning it as an attractive partner for Chinese operators.

300m+

Chinese people over 60

Expanding into adjacent services

Following the integration of DomusVi Domicile in early 2015, the group further strengthened its position in home-care services with the acquisition of Domidom Soins.

This acquisition leveraged PAI’s deep knowledge of the French market and its strong track record in healthcare services, including investments such as Cerba European Lab, Ipsen and Ceva Santé Animale.

It also supported a broader strategy of delivering comprehensive elderly care in France, creating synergies across the group’s activities, from home-based services to nursing homes.

In July 2017, PAI sold DomusVi to Intermediate Capital Group and Sagesse Retraite Santé.

Home-care agencies operated by DomusVi in France