Korian (KORI) agreed to buy Medica SA for 1.1 billion euros ($1.5 billion) in a deal that will create the largest French operator of nursing homes.
Medica holders will receive Korian stock valued at about 23.01 euros a share, the companies said in a statement today. That’s 15 percent above Medica’s closing price Nov. 15 in Paris.
The combination, which Korian and Medica described as a merger of equals, will create a stronger company better able to expand geographically, they said. The resulting company will have 57,164 nursing home beds Europe, including in France, Germany and Italy, the companies said. Orpea SA (ORP), France’s biggest care-home operator, has 40,374 beds, according to the company’s website.
Korian Chief Executive Officer Yann Coleou will be CEO of the combined company, while his counterpart, Jacques Bailet, will be chairman. Christian Chautard, the chairman of Paris-based Korian, will become chairman a year after the merger.
Medica holders will receive about 0.91 of a Korian share for each Medica share. The transaction is subject to approval by France’s antitrust regulator. Special shareholder meetings for both companies are planned in the first quarter of next year to vote on the deal.
JPMorgan Chase & Co., BNP Paribas, Credit Agricole SA and Bredin Prat advised Korian, while Medica received advice from Credit Suisse Group AG and Cleary Gottlieb.
Medica, based in Issy-les-Moulineaux near Paris, rose 0.7 percent to close at 20.03 euros Nov. 15. Korian fell less than 0.1 percent to 25.31 euros.
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