Emeis, an organisation specialising in nursing homes and personal care services, formerly known as Orpea, has recently announced its decision to divest its operations in Chile and the Czech Republic for a total of €171 million. Here is an analysis by the experts at AURIS Finance, a mergers and acquisitions consultancy.
Emeis Group (formerly Orpea) is pursuing its strategy of reducing debt and refocusing on its core markets. In the Czech Republic, Emeis signed an agreement in December 2024 with the Penta Healthcare Group for the sale of its activities, comprising nearly 2,200 beds in 17 establishments. In Chile, the group has sold its entire 50% stake in Rentas Senior Suites S.A. to its local partner Cimenta, which manages around 800 beds across 5 establishments.
Repositioning strategy
These two disposals are part of a robust strategy of withdrawal initiated three years ago. Emeis’ strategic plan, ‘Orpea is changing! With and for you’, was launched in November 2022. It was also on this date that the group changed its name. This strategic repositioning followed the scandal exposed by journalist Victor Castanet in his book Les Fossoyeurs (Fayard 2022). It highlighted a prioritization of profit, inadequate staff management, and a misuse of public funds. Consequently, a comprehensive restructuring was initiated. The group has committed to enhance its medical practices, reinforce its ethical standards and enhance employee safety. Additionally, a debt reduction initiative has been undertaken to address its financial stability.
Disposal plan
The group’s stated ambition is to dispose of €1.5 billion of property and operating assets between June 2022 and 2025, and to this end it has drastically reduced its portfolio of owned property assets, from 47% in 2021 to 25% of the portfolio in two years. During 2024, Emeis completed the sale of property assets in Germany, Spain, Portugal, Belgium, the Netherlands and Ireland. Collectively, these transactions represent a total disposal volume of almost €80 million. The sale of assets in the Czech Republic and Chile will enable the group to achieve €251 million in disposals by 2024. These transactions bring the volume of disposals completed since mid-2022, or secured to date, to almost €900 million, i.e. around 60% of the final target set by the group.
A European leader
Despite the scale of the scandal, Emeis Group remains the European leader in comprehensive dependency care, with almost 94,000 beds in 1,031 establishments. The group has been able to concentrate its presence in Europe by geographic refocusing. France, Benelux, the United Kingdom and Ireland account for almost half of the group’s business, with 574 establishments and 45,431 beds. These four markets account for 58% of group sales.
Our experts at your service
France’s population is ageing: in 2022, the number of people living in France aged over 65 was almost 18 million, while the number of people aged over 75 is rising at a rate of 3% per year. This represents a lucrative market for senior residences, of which the number is increasing. The nursing home sector is set to continue expanding through further mergers. AURIS Finance’s experts are specialised by sector. Our dedicated health and personal services specialists are at your service, supporting you through every step of your sale or acquisition.
