Carlyle prepares sale of German nursing home group Alloheim: sources

FILE PHOTO - A general view of the lobby outside of the Carlyle Group offices in Washington, U.S. May 3, 2012. REUTERS/Jonathan Ernst/File Photo

FRANKFURT/LONDON (Reuters) - Private equity investment firm Carlyle CG.O is preparing a sale of one of Germany's top three nursing home operators, Alloheim, as it seeks to benefit from high valuations for healthcare assets, people close to the matter said.

Carlyle has started a process of selecting investment banks to organize an auction, with Goldman Sachs GS.N and JP Morgan JPM.N seen in the lead to win the sellside mandate, the sources said on Friday.

Carlyle and the banks declined to comment.

The sale, which could value the company at up to 1 billion euros ($1.14 billion), is expected to be launched in autumn, one of the sources said. It comes after a string of similar deals in the recent past, including the sale of French peer DomusVi and Germany’s Casa Reha or that of German clinic chain Schoen.

Since Carlyle bought Alloheim from Star Capital in 2013 the buyout group has added to the business with a series of acquisitions.

The 2.3 billion-euro DomusVi sale by PAI Partners in June, which valued the company at more than 12 times expected core earnings, is seen as a possible benchmark for the Alloheim sale, the people said.

Alloheim currently operates 155 nursing homes and employs 14,500 staff.

Reporting by Arno Schuetze, Dasha Afanasieva and Pamela Barbaglia; Editing by Greg Mahlich