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CareTech Holdings to Buy UK Provider of Brain Injury Care Provider for GBP 20.3m.

MANews-(C)2009-2016

16 March 2016 - UK-based specialist social care services provider CareTech Holdings plc (AIM: CTH) has agreed to acquire the entire issued share capital of UK-based care facility operator Oakleaf Care (Hartwell) Ltd. and all of the residential properties from which it operates, the company said.

Oakleaf is a Northampton-based specialist in the care and rehabilitation of men with acquired brain injury.

The total consideration for Oakleaf is GBP 20.3m in cash (USD 28.65m), comprising an initial payment of GBP 18.3m (including GBP 11.4m for the properties) and an earn-out of GBP 2m.

Oakleaf was founded in 2004 and provides a range of pathways from rehabilitation through to long term and end of life care.

It currently operates 102 residential beds across nine freehold sites in the Northampton area.

The sites include a new, purpose-built facility comprising 22 beds, which opened this month. Oakleaf offers both highly specialised rehabilitation beds as well as community based step down provision and employs approximately 225 people including strong clinical and therapeutic teams.

In the year ended 31 December 2014, the trading company Oakleaf Care (Hartwell) Ltd. reported sales of GBP 7.3m, EBITDA of GBP 2.3m, profit before tax of GBP 0.7m and had net assets at 31 December 2014 of GBP 1.2m.

The freehold properties were held separately.

Oakleaf's senior management team, including co-founder, shareholder and chief executive Ian Mosley, will remain with Oakleaf following its acquisition by CareTech.

The acquisition, which is expected to be immediately earnings enhancing, builds on CareTech's existing neurological services, represents a further regional growth platform for the company in the ABI sector and further increases our penetration into health provision provided by Clinical Commissioning Groups.

This acquisition of Oakleaf will be financed from the GBP 30m that the company raised last month through an innovative ground rent transaction announced on 19 February 2016.

Country: UK

Sector: Healthcare

Target: Oakleaf Care (Hartwell) Ltd

Buyer: CareTech Holdings plc

Vendor:

Deal size in USD: 20.3m

Type: Corporate Acquisition

Financing: Cash

Status: Agreed

Buyer advisor: , ,

Comment:

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Publication:M & A Navigator
Geographic Code:4EUUK
Date:Mar 16, 2016
Words:346
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