€1bn French investment fund buys nursing home chain
French infrastructure investor InfraVia has snapped up Irish nursing homes operator CareChoice in a deal understood to be worth €70m.
InfraVia has a €1bn infrastructure fund at its disposal. It aims to more than double the size of the Irish unit, with plans to build four new care homes and to expand some facilities.
CareChoice operates six nursing homes - at locations in Cork, Waterford and Dublin - and is understood to be one of the country's biggest nursing home operator.
Four Dublin sites have already been identified for development in the initial phase of the expansion strategy, the companies said.
Census data yesterday showed that since 2011 there had been a 19pc increase in the number of over 65s - to 638,000 people.
CareChoice management, led by CEO Paul Kingston, will remain in situ after the deal. The new board will feature Jimmy Tolan and Fergus Clancy. Mr Tolan has been chairman of CareChoice for the past two years. He is also chairman of the Rehab Group and a former CEO of VHI Healthcare.
Mr Clancy is a former CEO and chairman of the Mater Private Group. The latest accounts filed for the business show CareChoice had a turnover in 2015 of €17.5m.
CareChoice is being sold by Emerald Investment Partners, which is based in London, which paid an estimated €33m for the business in 2014.
CareChoice's founders included CEO Paul Kingston as well as Michael Lane and his family, who exited along with other investors in the 2014 deal.
Alan McIntosh founded Emerald, which also backed stock-exchange-listed house builder Cairn Homes.
CareChoice was advised on the deal by Investec.