CareTech Holdings PLC Acquisition (4004I)
June 19 2017 - 2:00AM
UK Regulatory
TIDMCTH
RNS Number : 4004I
CareTech Holdings PLC
19 June 2017
For immediate release 19 June 2017
CareTech Holdings PLC
("CareTech" or "the Group")
Acquisition
CareTech Holdings PLC (AIM: CTH), a pioneering provider of
specialist social care services in the UK, is pleased to announce
that it has agreed to acquire the entire issued share capital of
Selborne Care Limited ("Selborne") for a total consideration of
GBP16.9 million in cash.
Selborne is a high quality provider of specialist residential
care, supported living and day care services for adults with
learning disabilities and challenging behaviours. Selborne is based
in Droitwich in Worcestershire and operates across the Midlands and
the South West. It has 57 residential beds in eight freehold sites.
Supported living services are provided to 30 service users.
Innovative outreach and day services are also offered.
Selborne was founded in 2006 by its Directors John McAllister,
Michael Stratford, Simon Bishop and Peter Mooney, who all have
extensive healthcare experience and will not remain with the
business post-completion. Selborne has delivered year on year
growth since it was founded.
In the year to 31 December 2016, Selborne reported revenues of
GBP13.3 million and EBITDA of GBP2.4 million. Its net assets on a
debt-free, cash-free basis at 31 August 2016 were GBP13.4 million.
The acquisition includes freehold properties carried in Selborne's
balance sheet valued at GBP12.4 million.
The acquisition, which is expected to be immediately earnings
enhancing, is in line with CareTech's strategy of geographic
expansion and strengthens the Company's presence and service
offering in the Midlands and South West.
The acquisition will be financed from existing cash
resources.
Mike Stratford, Selborne's Chief Executive, commented: "We have
enjoyed developing Selborne since its creation in 2006 and would
like to thank our staff for their support and dedication over this
time whose contribution has helped Selborne become the quality
operation it is today. We are delighted to be handing over to
CareTech who we believe share our commitment to customer focused,
quality care and support services."
Farouq Sheikh, CareTech's Executive Chairman, commented: "We are
delighted to announce the acquisition of Selborne, a high quality
business with a strong reputation in high acuity adult care and
good growth prospects. I would like to welcome the Selborne team to
CareTech.
"The acquisition is immediately earnings enhancing. In line with
our growth strategy, it extends our geographical reach and service
offering to local authorities. We continue to evaluate other
acquisition opportunities to further consolidate our fragmented
marketplace."
For further information, please contact:
CareTech Holdings PLC 01707 601800
Farouq Sheikh, Executive Chairman
Michael Hill, Group Finance Director
Buchanan (PR Adviser) 020 7466 5000
Mark Court
Sophie Cowles
Stephanie Watson
Panmure Gordon (Nomad and Joint Broker) 020 7886 2500
Freddy Crossley
Peter Steel
Charles Leigh-Pemberton
WH Ireland (Joint Broker) 020 7220 1666
Adrian Hadden
Nick Prowting
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
About CareTech
CareTech Holdings plc is a leading provider of specialist social
care services, supporting adults and children with a wide range of
complex needs in more than 260 specialist services around the
UK.
Committed to the highest standards of care and care governance,
CareTech provides its innovative care pathways through five
divisions covering adult learning disabilities, mental health,
young people residential services, foster care and learning
services.
CareTech, which was founded in 1993, began trading on the AIM
market of the London Stock Exchange in October 2005 under the
ticker symbol CTH. Its property portfolio comprises more than 200
properties.
For further information please visit: www.caretech-uk.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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