Child education specialist ROC sold for £11m
A FAMILY company which offers residential care and education to children and young people with autism and other complex neeeds, has been sold to a listed company for up to £11.4m.
ROC Northwest, which is based at Carnforth, Lancashire, has been acquired by CareTech Holdings for an initial
cash payment of £8.725m and an earn-out of up to £2.7m.
ROC provides residential care and education for challenging and vulnerable young people with complex needs such as SEBD (Social, Emotional, Behavioural Difficulties). It has established a model of therapeutic care and education which has generated over the past few years a history of high regulatory grades across its services.
It currently has a capacity of 41 residential places in seven residential homes in Lancashire and 25 education places in its school in Preston.
Founded in Lancaster in 2005 by directors, Hilary Waterhouse and Glyn Waterhouse, it has grown profitably since. ROC’s senior management team will continue in their roles at CareTech, driving forward the quality of services for children.
Hilary Waterhouse, Co-founder of ROC, said: “ROC is a family run business offering high standards of care and education in the learning disabilities sector. We are pleased that we have now joined the larger family of CareTech. We had a number of different companies wishing to buy our business but chose CareTech as we believe in their philosophy of care and working practices that mirror our own expectations and high standards.”
In the year to the end of July 2014 ROC reported revenues of £5m and profit before rent and tax of £802,000. In the year to July 2015 two new services were added and are now fully operational which has increased both revenue and profitability, CareTech said.
Social care services provider CareTech Holdings, which is headquartered in Potters Bar, Hertforshire, said
ROC is a strong geographic fit with its current businesses, Children’s Residential Services in Scotland (Spark of Genius and ACAD) and North Wales (Branas Isaf) and services in Staffordshire and Yorkshire.
Farouq Sheikh, executive chairman of CareTech, said: “We are delighted to announce the acquisition of ROC whose impressive growth in the past few years reflects the quality and innovation of its services and the strength of its local authority relationships.
“This business complements very well our existing Children’s Residential Services and I would like to welcome the team at ROC to CareTech. This acquisition, which is expected to be immediately earnings enhancing, marks our third transaction utilising the whole of the £21m gross placing in March this year within nine months.”
