KOS, an Italy-based provider of care homes for senior citizens, rehabilitation services, healthcare centres and hospital services (and a CIR group company), is receiving a €150m investment from AXA Private Equity.
Under the agreement, in the first phase AXA will subscribe to a €20m reserved capital increase by KOS to support its development.
It will also buy the majority of shares held by minority shareholders, in particular the entire shareholdings of Morgan Stanley and Wise Equity.
Over the next three years, AXA Private Equity will then participate in further reserved capital increases, in one or more tranches. AXA’s stake of 41% at closing will rise incrementally over the next three years to 47%.
The deal, which requires the consent of the European antitrust authorities, is scheduled to close in the first quarter of 2011.
Founded in 2002, KOS invests in services for chronic care (residential homes providing health, psychiatric and rehabilitative care and care for the disabled), and manages advanced diagnostic and therapeutic technology in public and private hospitals (MRI, PET, accelerators, proton therapy centres). It manages 59 facilities in North-Central Italy comprising more than 5,500 beds, with approximately 400 more beds due to come on stream.
Kos currently employs 4,000 people.
Commenting on the investment, Rodolfo De Benedetti, Chief Executive of CIR, said: “The entry of a prestigious international partner such as AXA Private Equity alongside the majority shareholder CIR will provide KOS with new resources that will be entirely dedicated to the development of the company”.