The ORPEA group is a European leader in dependency care, operating nursing homes, post-acute and rehabilitation clinics, psychiatric care clinics and home care services (serviced residences, day care, home-based services and day-time and night-time hospital services). Founded by Dr Jean-Claude Marian in 1989, the company was floated in 2002. It operates 950 facilities in 14 countries, corresponding to 96,577 beds (including 17,388 beds in facilities under development) and employs almost 60,000 people.
Stake in ORPEA
FFP invested in ORPEA in July 2011, buying some of its shares from the founder and others on the market. FFP increased its interest in ORPEA when the latter carried out a €203 million capital increase in 2011.
On 26 July 2018, after 11 years of being a shareholder, FFP sold 550,000 ORPEA shares, representing around 0.85% of the company’s equity. The shares were placed exclusively with institutional investors following an accelerated bookbuilding process at a price of €116 per share, making a total of €63.8million.
At 31 December 2018, the FFP group (via wholly owned subsidiary FFP Invest) held 5.0% of ORPEA.
FFP Invest, represented by Thierry Mabille de Poncheville, has a seat on ORPEA’s Board of Directors, is a member of its Audit Committee and chairs its Appointments and Remuneration Committee.
In 2018, ORPEA continued its international expansion, adding 10,000 beds across its network. The proportion of the group’s beds outside France has risen from 40% four years ago to 65% of the total network today, and 85% of ORPEA’s beds under construction are located outside France. The group has adopted a new cluster-based organisation to support its global development.
Revenue totalled €3,420 million in 2018, an increase of 9.0%, including organic growth of 5.0%. EBITDAR amounted to €912 million, equal to 26.7% of revenue. ORPEA owns 47% of its buildings, which were valued at €5.6 billion at 31 December 2018, excluding assets in the process of being sold.
In early 2019, ORPEA announced that it was purchasing equity stakes and making acquisitions in Latin America (Brazil, Chile and Uruguay), with the aim of having 7,000 beds in that region in five years’ time. In 2019, the company is aiming to grow revenue by 8.2% to €3,700 million.
Number of beds under development in 2018
Revenue growth in 2018
2018 organic growth of revenues