Orpea: The home services activities of the Orpea group would be in the sights of the KKR fund

(BFM Bourse) – The home help activities of the manager of retirement homes would attract the interest of the KKR fund, according to The echoes. Thursday evening, Orpea announced the termination of negotiations between its creditors and the Caisse des dépôts et consignations on the group’s restructuring project, which is at stake for its survival.

WhileOrpea is engaged in a race against time not to switch to the safeguard procedure, some actors would eye the assets of the injured prey.

The KKR fund was working on an offer targeting the Ephad group’s home services activities, housed in the Domidom subsidiary, reported The echoes citing sources familiar with the matter. The investment fund would have mandated the investment bank Centerview to pilot this operation, adds the economic daily. Neither Orpeanor KRR and its counsel wished to comment on this information.

According to The echoes“the approach would be studied via one of the American fund’s holdings. In the United States, he is already a shareholder of the American group BrightSpring, which has become one of the leaders in home health services. In France, he is also shareholder with approximately 40% of Elsan, French number two in hospitalization”.

In 2014, Orpea embarked on this sector of home help, with the takeover of the Domidom, then ADHAP networks, to offer vulnerable people and those with loss of autonomy a range of services complementary to those already developed by its establishments (homes nursing homes, senior service residences, follow-up care and rehabilitation clinics and psychiatric clinics).

Restructuring negotiations fail

Thursday evening, Orpea confirmed the failure of negotiations with its creditors and a consortium of investors led by the Caisse des dépôts et des consignations, with a view to financing the restructuring of the group of private nursing homes in difficulty. The sticking point: the value of the conversion into capital of the debt held by a group of investors.

In his press release, Orpea said it was continuing “discussions with the group of unsecured financial creditors whose support is necessary to reach an agreement on a restructuring plan in line with its proposal communicated to the market on November 15, 2022”. The operation of retirement homes, namely the capitalization of 3.8 billion euros of the Company’s unsecured debt and a capital increase of between 1.3 and 1.5 billion euros.

Time is running out for Orpea. The company risks running out of cash in the first quarter of 2023. It has until mid-February to find financing as part of an amicable conciliation procedure.

On the stock market, the title Orpea gained 2.6% to 7.01 euros, this Friday morning around 9:30 a.m. The day before, the action had fallen by 7.8% in reaction to the announcement of the failure of negotiations on the restructuring of the debt between the creditors ofOrpea and the Caisse des dépôts et des consignations.

Sabrina Sadgui – ©2023 BFM Bourse

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