Korian announces a proposed acquisition in Belgium; The Group would strengthen its sector leadership and reinforce its offer in assisted living as well as home care services.

Regulatory News:

Korian (Paris:KORI):

Korian, the European leader in Ageing Well, announced the signing of the proposed acquisition of the Belgian group, Foyer de Lork, a reference operator in the market for long-term care nursing homes and assisted living facilities in Flanders, completed by a buyback of home care activities from the sellers. This operation would enable Korian to become the second largest private operator in Belgium of assisted living facilities and long-term care nursing homes and to take a significant position in the booming home care sector. The aim for the Group is to be able to offer its customers a wide range of services adapted to each of their needs, from home care, to where appropriate specially designed assisted living facilities and to long-term care nursing homes. This positioning is designed to take greater account of the new expectations of senior citizens and their families, in a dynamic and fast-changing market

As part of the transaction, Korian expects to retain ownership of 4 facilities while other facilities in the network would be sold. This transaction will be financed with cash from Korian and available bank credit lines. The transaction is expected to be accretive on an earnings per share basis in 2016.

The acquisition is subject to conditions, including the approval by the Belgian competition authorities. The amount of the transaction is not disclosed.

"Foyer de Lork has developed, alone or through partnerships, innovative concepts and high quality care in assisted living facilities, in long-term care nursing homes or in home care. The inclusion of the company and its management in the Korian group would entirely fit within our ambition to extend the service offering to our customers and roll out a wider range of better-supported lifestyle choices for the elderly. More broadly for the Group, it is a significant step in the home care services market across Belgium, which will benefit all countries in the Group. With the announcement of this transaction, led by very experienced local management, Korian is demonstrating its intent and its ability to seize growth opportunities whilst controlling execution risks,” commended Sophie Boissard, Korian group's Chief Executive Officer.

Developing a comprehensive offering for elderly care

With 14 facilities, more than 1,200 beds including more than 20% in assisted living facilities at the end of 2015, Foyer de Lork is one of the main operators in Belgium. The facilities’ network that it operates, located in Flanders, is modern (average age less than 10 years) and includes 95% private rooms. The additional activities coming from this operation would strengthen the business in home services in Flanders, in the fields of care and household assistance. It would also lead to operate an innovative concept of a dedicated senior care services centre combining, around a building complex fully integrated within the town, assisted living apartments, a long-term care nursing home as well as a group of activities and shops dedicated to living and ageing well.

The overall business had 2015 revenue in the region of €70 million.

Foyer de Lork has a portfolio of projects of more than 1,400 beds, including nearly 700 expected to open in the next 2 years and half in assisted living facilities.

A project within the strategy of extending Korian's service range

The inclusion of these businesses within the Group scope would help build and roll out an extended range of services for the elderly from the Belgian market. The Group, which would employ more than 4,000 employees in Belgium, would have a network of 72 facilities, more than 500 apartments in assisted living facilities and nearly 7,500 beds in long-term care nursing homes, and a broad platform of home care services. This acquisition would help build an offer combining the 3 types of services across the Group in order that customers benefit from the care responding closest to their requirements. After this transaction, Korian would reach approximately €290 million in revenue in Belgium, and would continue to strengthen its international presence.

Next press release: 20 July 2016 after close of trading

Revenues for the second quarter of 2016

ABOUT KORIAN

Korian, Europe’s leading Ageing Well specialist, founded in 2003, has the capacity to accommodate some 70,000 residents and patients in Europe (France, Germany, Italy and Belgium) and employs around 45,000 people. The Group manages over 700 facilities in four business lines: long-term care nursing homes, post-acute and rehabilitation care clinics, assisted living facilities and home-care services.

For more information, please visit the website: www.korian.com

Korian is listed on Euronext Paris Compartment A and is included in the following indices: SBF 120, CAC Health Care, CAC Mid 60, CAC Mid & Small and MSCI Global Small Cap

Euronext ticker: KORI - ISIN: FR0010386334 – Reuters: KORI.PA – Bloomberg: KORI.FP

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