Clearwater International and DC Advisory Partners have advised GDP Vendôme and DomusVi on their merger, generating the first French nursing homes group.
The new group DVD Participations, led by Jean-François Vitoux, is 59% owned by DomusVi and 41% by GDP Vendôme, with a 50/50 shared governance between the two shareholders.
Founded in 1983 by Yves Journel, which remains the majority shareholder, DomusVi was the only major player in the sector with a presence in all areas of elder care: nursing homes, short stay, assistance and home care, residential services, aftercare and rehabilitation.
In 2010, DomusVi managed nearly 7,200 beds in France, through a network of 86 nursing homes, 4 aftercare and rehabilitation clinics and 5 residences with services. In addition, the company operates 21 platforms dedicated to assistance and home care generating a volume of 750,000 hours of services. DomusVi also benefits from a presence in Quebec (1,900 beds) since the 2007 acquisition of group SEDNA, the first private operator for long term care and services to the elderly in Quebec.
GDP Vendôme group, created in 1990 by CEO and only shareholder Jean-François Gobertier, had experienced, under the name Dolcéa, the fastest development in the sector in 10 years.
In 2010, Dolcéa managed 126 residences, including 3 residences with services and 1 aftercare and rehabilitation clinic, the other activities consisting of nursing homes for nearly 9,800 beds.
In total, with 225 establishments under management, 16,500 nursing homes beds, 10,000 employees and 2011 expected sales of €600m, DVD is the industry leader in medico social activities in France.
To facilitate the management of DVD‘s strong organic growth, the two shareholders have decided to maintain ownership of their real estate assets. DomusVi also keeps its international activities (SEDNA), assistance and home care activities, aftercare services and its minority stake in the Emera group.
These activities and assets, however, run by DVD, could be integrated in the merged group, if market conditions enable it, prior to an IPO in 2013.
DC Advisory Partners also advised DVD and DomusVi shareholders regarding the refinancing of their debt through the implementation of:
– A structured credit of € 235 million for DVD, consisting of two tranches A and B and capex
– A credit of € 109 million for DomusVi, combining corporate and real estate debt.
The Clearwater International team was led by Laurent Camilli