Directors exit as care company sold for £17m
A Worcestershire residential care company has been sold for £16.9m.
CareTech Holdings, a provider of specialist social care services, has acquired Selborne Care.
Droitwich-based Selborne operates eight sites across the Midlands and the South West, with 57 residential beds across its portfolio.
It provides services for adults with learning disabilities and challenging behaviours. Supported living services are provided to 30 service users, and also offers outreach and day services.
Selborne was founded in 2006 by its directors John McAllister, Michael Stratford, Simon Bishop and Peter Mooney, who will all now leave the company.
Mike Stratford, Selborne’s chief executive, said: “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.”
Bracebridge Corporate Finance was appointed to explore the strategic options for sale and to advise on the sale process, identifying potential purchasers and advising on the financial and commercial aspects of the transaction.
Andy Moore, managing director of Bracebridge Corporate Finance, said: “This is an excellent result for the shareholders of Selborne and is in line with CareTech’s strategy of geographic expansion and strengthens its presence and service offering in the Midlands and South West.”
Legal advice to the vendors was provided by Peter Hill, Thomas Rainey and Naomi Spring from Freeths.
In 2016, Selborne reported revenues of £13.3m and EBITDA of £2.4m.
Farouq Sheikh, CareTech’s Executive Chairman, commented: “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.”
The acquisition will be financed from existing cash resources.