19 Jun 2017 07:00
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 £16.9 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 £13.3 million and EBITDA of £2.4 million. Its net assets on a debt-free, cash-free basis at 31 August 2016 were £13.4 million. The acquisition includes freehold properties carried in Selborne's balance sheet valued at £12.4 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