The Canada Pension Plan Investment Board (CPPIB) has purchased a 15% stake in ORPEA, a European-based provider of long-term care services.
It has acquired 7.95 million shares from Dr. Jean-Claude Marian, founder and chairman of ORPEA, and from the company Santé Finance et Investissement, at a price of €40.34 ($59.03) per share, representing an investment of €320.8 million ($499 million).
In addition, the CPPIB has agreed to underwrite a primary share capital increase of up to €100 million ($146.4 million) to help accelerate ORPEA’s international growth program.
“CPPIB sees this investment in ORPEA as the start of a long-term partnership with ORPEA’s management team and board,” said Scott Lawrence, vice-president and head of relationship investments at the CPPIB.
Formed in 1989, Paris-based ORPEA is one of Europe’s leading providers of skilled nursing, post-acute care, rehabilitation and psychiatric services. It operates 431 facilities across France, Belgium, Spain, Italy and Switzerland.