Korian closes the acquisition of Grupo 5, reinforcing Korian position in Mental Health in Spain

 High quality platform focused on mental health
 Expecting to reach c.€90m of revenue in 2022
 Strong demand for mental health services in Spain: a €2.5bn market expected to grow by 4% per annum
 Embedded organic growth of +10% CAGR over the next 5 years on the back of further ramp-up of existing facilities and greenfield pipeline
 Korian’s mental health activities expected to represent c.€330m in 2023 (France, Spain, Italy)

Korian, the leading European care services group for elderly and fragile people, announces the closing of its acquisition of the Spanish mental health provider Grupo 5, after obtaining the necessary regulatory and antitrust approvals.
In line with Korian strategy to develop its Healthcare activities, this acquisition is a new step in building a leading European mental health platform. With an expected €330m revenue in 2023, generated in France, Spain and Italy, Korian is the third largest European player of this market.
Following the acquisition of Ita Salud in 2021, Korian is building a leading Spanish mental health services platform with 77 facilities. Korian is now covering around 95% of the Spanish population through presence in 14 regions.
The Spanish mental health market is estimated at around €2.5bn, and should grow by c.4% per annum over the next 5 years, fuelled by a current deficit in supply compared to the demand.
Grupo 5 has proved its capacity to deliver significant organic growth (+20% CAGR over the last 5 years), having executed among other things 15 greenfield developments in the last 5 years and constructed a pipeline of an additional 24 projects. Grupo 5 is expected to generate a +10% organic CAGR over the next 5 years.
Sophie Boissard, Group Chief Executive Officer, stated that “this acquisition allows the Group to significantly reinforce its presence in Spain through the integration of a recognised network dedicated to specialised care and mental health, very complementary to the activities we have developed in geriatrics and in mental health. It is in line with the Group’s strategy of developing proximity healthcare services, to meet the growing needs of care in relation to chronic diseases “.
Guillermo Bell, Grupo 5 CEO, declared: “I am delighted for our team to join the Korian family as I believe there is a clear alignment between both groups’ values, missions and cultures. I am sure the transaction will help Grupo 5 to continue improving its services to meet the growing mental health demand in Spain, following an already successful expansion with the support of Corpfin Capital, resulting in +15 facilities since 2017“
Álvaro Olivares, Corpfin Capital Managing Partner, stated: “Grupo 5’s management has done an amazing job during these past years to create a leading mental health services group in Spain. Supporting the growth and professionalisation of the company and the enhancement of its capabilities has been a privilege for Corpfin Capital, and has allowed Grupo 5 to play a key role in the development of the Spanish mental health sector, having a positive direct impact on thousands of people and indirectly on society as a whole.”