The firm said it had identified residential care as an attractive opportunity in Germany due to the demographic and socio-economic trends driving long-term demand for care in the well-funded German market, according to Star partner Roy Mani. The German care home market is characterised by significant fragmentation and the investment in Alloheim created a strong platform from which Star could drive value creation through a combination of acquisition and new build activity, he said.
It acquired the business in 2008 which, at that time, comprised 13 facilities totalling 1,500 beds and 250 assisted living apartments across Germany. Today Alloheim today operates 49 nursing homes, with approximately 6,000 beds and more than 4,000 employees. EBITDA has grown at a CAGR of 35 per cent since 2008.
Mani said, “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.
“Alloheim represented a real opportunity to create value through a ‘buy and build’ strategy focused on delivering high quality care for residents as well as good returns to our investors.”
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