FRANKFURT (Reuters) - Buyout group Nordic Capital has agreed to buy Alloheim, one of Germany's top three nursing home operators, for about 1.1 billion euros (£1 billion) including debt, sources close to the matter said.
Alloheim owner Carlyle and Nordic Capital declined to comment.
Nordic Capital prevailed in an auction against DomusVi, backed by Intermediate Capital Group (LON:ICP), as well as buyout groups Ares and Fosun, they added.
The deal values Alloheim at about 12.5 times its 88 million euros in earnings before interest, tax, depreciation and amortisation expected for 2017, the sources said.
Bankers had been working on part financing the deal with debt packages of around six times core earnings, which could be senior and subordinated loans and bonds or all senior loans, people close to the matter had said.
The Alloheim sale comes after a string of similar deals, including the sale of French peer DomusVi and Germany's Casa Reha and German clinic chain Schoen.
The broader healthcare sector has also seen some high-profile deals this year in Germany, including the sale of generics group Stada to private equity firms Bain and Cinven.
Separately, German drugs and high-tech chemicals Merck (NYSE:MRK) is currently shopping its consumer health unit valued at up to 4 billion euros.
Since Carlyle bought Alloheim from Star Capital in 2013, the buyout group has added to the business with a series of acquisitions.
Alloheim currently operates 155 nursing homes and employs 14,500 staff.