Ambea to buy Aleris' Nordic care business in SEK 3 bln deal

Ambea publ AB

16/10/2018 07:21

STOCKHOLM, Oct 16 (Reuters) - Sweden's Ambea  AMBEA.ST  said
on Tuesday it was buying rival Aleris'  INVEb.ST  care
operations - primarily nursing homes and assisted living - in
Sweden, Denmark and Norway for an estimated 3 billion crowns
($334.9 million). 
    Ambea said the deal would make it the largest care provider
in the Nordic region with around 13,100 full-time
employees and 7,690 beds and placements under own management.
    "We will create major opportunities for synergies,
purchasing coordination and exchange of experiences in the areas
of operational and quality development," Ambea CEO Fredrik Gren
said in a statement.
    Aleris, owned by Investor AB  INVEb.ST , will purely be
focused on its healthcare operations following the deal.        
    Ambea said it intended to finance the deal with existing
credit facilities and new, secured bank financing, but that it
still planned for a 1.2 billion crown preferential share issue 
during the first half of 2019 to repay part of the financing and
lower its debt.
    Two of its largest shareholders, private equity firms KKR
and Triton with a joint 50.1 percent stake, intended to vote in
favour of the share issue, Ambea said. 
    The deal is subject to regulatory approval, with closing
expected during the first quarter of 2019.

($1 = 8.9582 Swedish crowns)

 (Reporting by Johannes Hellstrom; editing by Niklas Pollard)
 ((johannes.hellstrom@thomsonreuters.com; +4687001008; Reuters
Messaging: johannes.hellstrom.reuters.com@reuters.net))