Swedish residential care services provider Ambea AB has agreed to buy nursing homes and assisted living operations of rival Aleris AB for an estimated 3 billion Swedish crowns ($335 million) to become the Nordic region’s largest care provider.
The deal for operations in Sweden, Denmark and Norway will lift Ambea’s full-time workforce to 13,100, looking after 7,690 beds, while Aleris will become focused purely on its healthcare business.
Ambea will benefit from significant cost-saving opportunities, purchasing coordination and experience in operational and quality development.
Ambea said it expects direct annual cost savings of $4 million, half of which will take effect in 2019, before the full benefits are realized in 2020. It also expects operational improvements to bring a further $1.3 million of annual savings, starting in 2020.