Carlyle in $180m residential care deal

The firm has bought German-based Alloheim from STAR Capital using its European fund - and it continues to bolster its senior operating team, most recently with the addition of a former P&G executive.

The Carlyle Group has acquired Alloheim Senioren-Residenzen, a German care home business, from UK mid-market firm STAR Capital Partners

Financial details for the deal were not disclosed, but a source close to the matter said it valued the company at around $180 million. Equity for the investment will be provided by Carlyle Europe Partners Fund III, a 2006 vintage that reached its final close on €5.3 billion. It is now nearly 90 percent invested, according to the source. 

Headquartered in Dusseldorf in Germany, Alloheim operates nursing homes across Berlin, North Rhine-Westphalia, Hesse, Lower Saxony and Saxony. The facilities offer nursing care, assisted living, ambulatory care and specialised nursing services to their patients. 

STAR bought the business in 2008, when it comprised 13 homes and 1,500 beds. EBITDA has grown at a compounded annual growth rate of 35 percent since then, according to STAR, and the company now manages 48 facilities with more than 6,000 beds. It employs more than 4,000 staff.

“We had identified the German residential eldercare market as particularly robust due to its underlying demand drivers and strong insurance-based reimbursement system, which positively differentiates it to other countries,” Roy Mani, a partner of STAR, said in a statement. 

The deal comes shortly after Carlyle added another recruit to its senior operating team. The firm appointed Susan Arnold, formerly president of Procter & Gamble’s Global Business Unit, as an operative executive on Wednesday. Starting in September, Arnold will assist the private equity team throughout the investment process and advise portfolio company executives on management and operational strategies, the firm said. 

Arnold joined P&G in 1980, retiring in 2009. Prior to her role in the Global Business Unit, she served as vice chairman of global beauty care and health. She currently sits on the board of Disney and McDonalds. 

Carlyle’s operating team now numbers 25 operating executives.