July 19, 2017, Steve Monroe, Senior Care Investor - While we are sure Carlyle would like to divest HCR, they may sell their German SNF company first. Okay, so is The Carlyle Group going to sell its HCR ManorCare portfolio company or not? Well, we may not know that answer for a few weeks, maybe days, but the large PE firm is on the move to dispose of other nursing facility assets.
Just not in this country. Apparently, Carlyle is planning to sell its German nursing home company, Alloheim, which is the third largest nursing home company in Germany with more than 124 facilities in 2016. Carlyle bought it in 2013 for about 180 million euros when the company had just 49 facilities, up from 13 when London-based private equity firm Star Capital bought it in 2008.
Obviously, each owner has added a lot of growth, and while EBITDA grew at a 35% rate under Star’s ownership, we do not know how it fared with Carlyle. We assume quite well, since the rumored potential price for Alloheim may be up to 1 billion euros. If it happens, that would represent a record year in Germany, which averages about 500 million euros a year in SNF deals, but growing since a low in 2011.
Perhaps Carlyle is making a strategic decision to exit the SNF business worldwide. If so, this German sale later this year will be an easier slog than HCR ManorCare.