European private equity firms Palamon Capital Partners and G Square have invested in Spain’s Grupo SAR, a provider of residential and home care services to the elderly.
European private equity firms Palamon Capital Partners and G Square have invested in Spain’s Grupo SAR, a provider of residential and home care services to the elderly.
The investment will provide the expansion capital required to drive forward Grupo SAR’s growth plans. The terms of the transaction were not disclosed.
Established in 1992, Grupo SAR manages 39 residential and day care facilities and a rapidly growing home care division. The company serves over 120,000 people and currently employs a staff of 6,350. Grupo SAR generated revenues of EUR127m in 2008.
Grupo SAR will continue to be chaired by Higinio Raventós, founder, and by Jorge Guarner, the existing chief executive. Spanish investment group Confide will remain one of Grupo SAR’s leading shareholders.
Spain has traditionally underinvested in long-term care compared to other EU countries, but this trend is set to reverse as recent and planned legislative reforms impose higher standards of care.
Higinio Raventós, chairman and founder of Grupo SAR, says: ‘We are pleased to secure the financial backing of two such experienced investment professionals. I am confident that their support will enable us to achieve our ambitious growth. Central to this is our commitment to building on our reputation for delivering best in class service.’
Jaime-Enrique-Hugas, principal at Palamon Capital Partners, says: ‘We are very excited about the opportunity to invest in Grupo SAR. This is a high quality business led by a very strong management team. We are confident that Grupo SAR’s greater focus on higher dependency needs positions the company well to take advantage of the rapidly growing demand driven by Spain’s changing demographics.’
