Information on the target
Kursana Italia, the Italian arm of the German Dussmann Group, has acquired a 75% stake in Project Life, a Lombardy-based company specializing in the management of residential care facilities. The remaining 25% of the capital will continue to be held by Genius, the sole shareholder. This acquisition values the stake between €4 million and €7 million and is part of a broader strategy by Kursana to secure majority interests in various residential care facilities across Lombardy. This marks a significant transition for Kursana from being a service provider to a direct owner of facilities in the Italian market.
Project Life operates socio-healthcare residential facilities for the elderly, including those with reduced autonomy, with its primary operational site being a 65-bed residential care facility located in Olgiate Molgora, in the province of Lecco. In its most recent fiscal year, Project Life reported revenues of approximately €7.4 million, with an EBITDA of around €0.6 million.
Industry overview in the target’s specific country
The Residential & Long-Term Care industry in Italy is experiencing significant growth, driven by an aging population and increasing demand for specialized care services. The Italian government has been actively promoting policies to enhance the quality of care for the elderly, which has led to a rise in both public and private investments in the sector. This trend is expected to continue as the demographic shift towards an older population necessitates more comprehensive care solutions.
In Lombardy, the demand for residential care facilities is particularly pronounced, with a fragmented market that presents both challenges and opportunities for consolidation. The region is home to a diverse array of care providers, ranging from small family-run facilities to larger corporate entities. This fragmentation allows for strategic acquisitions, as larger operators like Kursana can leverage their resources and expertise to improve operational efficiencies and service quality.
Moreover, the COVID-19 pandemic has underscored the importance of robust healthcare infrastructure, prompting a reevaluation of care standards and operational practices within the industry. As a result, facilities that can demonstrate high standards of care and safety are likely to attract more residents and funding. The ongoing consolidation in the Lombardy residential care market is a response to these dynamics, as larger players seek to establish a stronger foothold in a rapidly evolving landscape.
As the sector continues to mature, there is an increasing focus on integrating technology and innovative care models to enhance the quality of life for residents. This includes the adoption of telehealth services, personalized care plans, and improved f…