What will Medica fetch?
publication date: Oct 30, 2009
As forecast here in September, BC Partners and AXA does plan to float care home group Medica on the bourse. BNP Paribas and Credit Suisse have been selected to handle the introduction.
BC bought the company in 2006 for EUR750m. Medica has 154 carehomes in France and 20 in Italy and had sales of EUR 387m in 2007.
There as yet no valuations out in the market, but a back of an envelope calculation suggests that if Medica has grown sales at 12% annually and if it enjoys the same margins and earnings multiples as larger rival Orpea, then Medica might fetch around EUR 750m, leaving the two private equity houses with no profit.
