Care homes group sold in £100m deal
A SUCCESSFUL care homes operator with 30 sites in the North West and Yorkshire has changed hands in a deal reportedly worth £100m.
Hyde-based Meridian Healthcare has been acquired by HC-One, a business led by the former boss of Priory Health Clinics Dr Chai Patel and backed by US healthcare investor Formation Capital. Financial terms were not disclosed but weekend reports valued the deal at close to £100m.
The deal was concluded on Friday, which marked the last day at the helm for Alan and Susan Firth, Meridian’s long-serving executive chairman and managing director, and finance director Barry Brooks.
Meridian is currently the 32nd largest care provider in the UK, with an annual income of £32.9m and pre-exceptional earnings of £13.5m in 2014. The majority of the 30-strong portfolio are former local authority homes, but the Firth’s have also invested in some high quality facilities over the last five years.
Mr Firth, 60, ordered a strategic reveiw of the business last summer and mandated property group Knight Frank to find a new partner for the business, which was majority owned by two employee trusts. Meridian has more than 1,500 registered beds and employs around 1,200 staff.
He said: “We chose HC-One because of our shared values and dedication to provide the highest quality care for our residents. The HC-One team is committed to ensuring the best experience for residents, and the best working environment for staff, on a foundation of sector-leading financial stability. We know they will continue with our passion for outstanding care for all those we support.”
Dr Patel added: “We are delighted that the owners of Meridian have chosen HC-One to acquire the company. As a high quality regional provider, their care levels match our ambition to operate the kindest homes, with the kindest, most professional staff, to make a real difference to the lives of older people in the UK.
“We look forward to sharing and learning best practice together, and continuing their great work with our commissioning partners. We welcome these excellent homes, their Residents and dedicated staff as we continue on our journey to become the country’s kindest care provider.”
HC-One said the Meridian brand would be retained and there will be no changes at the homes or with the senior management team, led by new managing director Paul Keys.
The acquisition of Meridian forms part of HC-One’s plans to acquire further homes and diversify the care provided to include retirement villages, residential, nursing and home care.
In November 2014 HC-One was acquired by Formation Capital, Safanad and Court Cavendish in a £477m deal that has brought new investment.
Since 1999, Formation Capital and its investors have invested over $5.5bn in the senior housing sector. Steve Fishman, president and co-chairman of Formation Capital, said: “The Meridian acquisition is a fantastic development for HC-One. As an outstanding regional provider, with an excellent track record, HC-One is an ideal partner to provide financial strength and stability.
“The acquisition represents the next step on our continued development of the estate, and development of the HC-One team to the benefit of residents and broader stakeholders.”
