The Carlyle Group has begun the process of selling off Alloheim, a German chain of nursing homes that the private equity firm initially acquired in 2013, according to a recent report.
Unnamed sources told Reuters that the Washington, D.C.-based Carlyle could seek up to $1.1 billion for the 155-facility nursing home chain, which employs 14,500 people. That impressive figure was based on similar recent deals, including the June sale of French senior housing operator DomusVi for 2.3 billion euros — or more than 12 times its expected core earnings, Reuters reported.
Carlyle is currently in the process of organizing an auction for the chain, with major investment banks Goldman Sachs and J.P. Morgan reportedly in the running to participate, according to Reuters.
A spokeswoman for Carlyle said the firm has no comment on the reports, calling them “rumours” in an e-mail to Skilled Nursing News.
The private equity player didn’t disclose the purchase price when it announced the deal in 2013, though the London-based Financial News pegged the value at 180 million euros. At the time, the Dusseldorf-based Alloheim had 49 nursing homes with more than 6,000 beds at locations throughout Germany. Carlyle added to the chain’s portfolio through acquisitions, Reuters reported.
This news comes amid chatter about Carlyle’s desire to sell off HCR ManorCare, the Toledo, Ohio-based skilled nursing chain that it has owned since 2007. Though June reports indicated that Carlyle had decided to cede ownership of the troubled chain to its current landlord, real estate investment trust (REIT) Quality Care Properties, Inc. (NYSE: QCP), talks regarding the potential equity takeover have stalled, and the parties remain locked in a battle over missed rent payments.
Written by Alex Spanko