F2i will hold 37.3% of the company, CIR’s interest will rise from 51.3% to 62.7%
International financial investors are expected to enter F2i Health Management (FHM), the investment vehicle set up for this purpose by F2i
Milan, March 16 2016 – CIR-Compagnie Industriali Riunite S.p.A. and F2i have reached an agreement with Ardian to buy from the latter for € 292 million 46.7% of KOS, the company of the CIR group that is one of the main operators in Italy in the healthcare and residential care-home sector.
In detail, on completion of the deal, F2i Health Management, a company controlled by the F2i Second Fund, will acquire from Ardian a shareholding interest in KOS for € 240 million, while CIR will buy the remaining part for € 52 million. At the same time, CIR will also acquire the remaining interests from management and other minority shareholders for € 33 million. CIR’s interest in the capital of KOS will thus rise from the current 51.3% to 62.7% for a total investment of € 85 million while F2i will hold 37.3%.
It is expected that additional international financial operators may take part in the deal by entering F2i Health Management with a minority interest. In this case the overall financial commitment of F2i could be reduced to € 180 million.
Based on the agreement, on completion of the deal CIR and F2i have undertaken to sign a shareholder agreement that will mainly regulate, in terms of governance, the right of F2i to appoint three board members out of eight, including the chairman. There will also be a qualified majority vote on matters of particular importance and F2i will contribute to decisions relating to management.
Ardian, independent investment company, entered into the ownership of KOS in 2010, actively collaborated with CIR during these years, contributing to the development of the company’s business. In these 5 years, Ardian supported the growth of KOS with important resources intended both for the completion of new residences for Senior Citizens and for the acquisition of existing facilities.
F2i is entering a business that is a market leader, both in terms of size and of quality of service provided, and which has significant prospects for growth through consolidation in a sector that is extremely fragmented. Growth and the constant improvement of efficiency and quality are the characteristics typical of the companies that F2i focuses its attention on.
CIR, in this new phase of development, will be able to count on the support of a qualified industrial investor in the medium-long term such as F2i.
The management of KOS has undertaken to reinvest part of the proceeds of this deal in the company.
Once the approval of the Italian Competition and Markets Authority has been obtained, the closing of the deal is expected to take place by the end of May.
KOS, a company founded by CIR in 2002, is one the main operators at national level in the healthcare and residential care-home sector with approximately 80 facilities, approximately 7,300 beds and over 5,000 employees in Italy. The company, which operates in the sectors of residential care homes, rehabilitation and cancer treatment units, diagnostics and the management of hospital facilities, is also active in the United Kingdom and India.
Over the years KOS has followed a path of growth through acquisitions and the launch of new facilities, with particular attention paid to continually improving the quality of the services offered to its patients. In 2015 in particular, the company acquired four new nursing homes for the elderly in Lombardy, with a total of over 700 beds, and it started managing a new nursing home for the elderly in Turin and a psychiatric rehabilitation unit in the Marche region. In 2015 KOS posted revenues of approximately € 440 million, with a compound annual growth rate (CAGR) of 6.2% since 2010, EBITDA of € 73 million (€ 42.1 million in 2010), and net income of approximately € 20 million (€ 4 million in 2010).
This is not a compatible browser.
To continue to navigate on this site, an updated or more recent browser is necessary
Before accessing the contents of this website, please read and accept the legal notice below.
The documentation and information contained in this area of the website are accessible only to persons who are not currently domiciled or located in the United States of America, Australia, Canada, Japan, or in any other jurisdiction other than Italy in which it is required an authorization by the competent regulatory authorities or other fulfillments (such Countries, included the United States of America, Australia, Canada, Japan, jointly the “Other Countries”).
The document and information contained in this area of the website are not, and must not be sent, or in any other way transmitted to or distributed to, directly or indirectly, in the United States of America, Australia, Canada, Japan or any Other Countries.
The documentation and information contained in this area of the website are not, and must not be sent by, or transmitted to or distributed to, directly or indirectly, persons resident or physically present in the United States of America, Australia, Canada, Japan, and do not constitute and cannot be interpreted as an offer to purchase or a solicitation of an offer to sell financial instruments addressed to U.S. Persons - as defined under the U.S. Securities Act of 1933, as amended, or to persons resident in Other Countries. The shares of COFIDE – Gruppo De Benedetti S.p.A. – which will change its company name to “CIR S.p.A. – Compagnie Industriali Riunite” on the effective date of the merger by incorporation with CIR S.p.A. – Compagnie Industriali Riunite - referred to in this area of the website have not been and will not be registered under the U.S. Securities Act of 1933, and may not be offered or sold in the United States of America absent registration or an applicable exemption from registration thereunder.
In order to access the information and documents contained in this area of the website I declare under my personal liability: not to be currently a U.S. Person, and not to find me at present in or not to be resident in the United States of America, Australia, Canada, Japan, or in any Other Country, and I have fully understood and accepted the limitations reported above.
The documentation and information contained in this area of the website are accessible only to persons who are not currently domiciled or located in the United States of America, Australia, Canada, Japan, or in any other jurisdiction other than Italy in which it is required an authorization by the competent regulatory authorities or other fulfillments (such Countries, included the United States of America, Australia, Canada, Japan, jointly the “Other Countries”).
The document and information contained in this area of the website are not, and must not be sent, or in any other way transmitted to or distributed to, directly or indirectly, in the United States of America, Australia, Canada, Japan or any Other Countries.
The documentation and information contained in this area of the website are not, and must not be sent by, or transmitted to or distributed to, directly or indirectly, persons resident or physically present in the United States of America, Australia, Canada, Japan, and do not constitute and cannot be interpreted as an offer to purchase or a solicitation of an offer to sell financial instruments addressed to U.S. Persons - as defined under the U.S. Securities Act of 1933, as amended, or to persons resident in Other Countries. The shares of COFIDE – Gruppo De Benedetti S.p.A. – which will change its company name to “CIR S.p.A. – Compagnie Industriali Riunite” on the effective date of the merger by incorporation with CIR S.p.A. – Compagnie Industriali Riunite - referred to in this area of the website have not been and will not be registered under the U.S. Securities Act of 1933, and may not be offered or sold in the United States of America absent registration or an applicable exemption from registration thereunder.
In order to access the information and documents contained in this area of the website I declare under my personal liability: not to be currently a U.S. Person, and not to find me at present in or not to be resident in the United States of America, Australia, Canada, Japan, or in any Other Country, and I have fully understood and accepted the limitations reported above.