BS Private Equity buys retirement home

The Italian mid-market private equity firm has acquired a majority stake in retirement-home chain Segesta for an undisclosed consideration.

BS Private Equity, the Italian mid-market private equity group, has purchasd a controlling interest in Segesta, a privately owned manager of retirement homes.  

BS acquired the stake for an undisclosed sum. It is the ninth investment funded from its €550 million ($675 million) BS Investiment IV fund. Segesta CEO Mariuccia Rossini will retain the remaining share capital.

Segesta, founded in 1997, manages beds for 620 elderly people in six residential and semi-residential homes in northern Italy, and is constructing a new 254-bed facility in Milan. It also provides home care through a network of doctors, nurses, and other health workers, and assists the mentally ill through small community day centres.

The company employs around 600 people, and last year reported sales of €26 million and an EBITDA of €2.5 million. BS partner Francesco Sironi said that the company intended to pursue an extrenal growth strategy. He also said the company had identified growth potential thanks to the fragmented nature of Italy's retirement home market.

BS Private Equity is a Milan-based private equity firm that arranges both MBOs and MBIs in manufacturing and service companies. It closed BS Investiment IV  in July 2003, and has now invested approximately 40 percent of the fund's committed capital in eight portfolio companies.

Last month, the firm announced its acquisition of a 57 percent stake of Italian mobile phone retail chain MIT Group through a management buy-in, and the completion of the management buyout of TREI, a manufacturer of veterinary products and livestock feed additives. Sironi said that after a hectic 15 months, the firm is expecting things to quieten down and is looking to invest the remainder of the fun through a small number of large deals.