CareTech gobbling up Selborne Care for £17m

Josh White Sharecast | 19 Jun, 2017 10:02 | | |

cash money sterling pound

CareTech Holding

426.00

17:18 27/06/17
-3.18%
-14.00
  • 8,346.98
  • -1.47%-124.35
  • Max: 8,476.22
  • Min: 8,343.53
  • Volume: 0
  • MM 200 : n/a
17:24 27/06/17
  • 967.04
  • -0.12%-1.16
  • Max: 970.00
  • Min: 965.19
  • Volume: 0
  • MM 200 : n/a
17:18 27/06/17
  • 4,850.42
  • -0.14%-6.80
  • Max: 4,867.69
  • Min: 4,837.59
  • Volume: 0
  • MM 200 : n/a
17:18 27/06/17

Specialist social care services provider CareTech Holdings announced on Monday that it had agreed to acquire the entire issued share capital of Selborne Care for a total consideration of £16.9m in cash.

The AIM-traded firm described Selborne as 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, with supported living services provided to 30 service users, and “innovative” outreach and day services also offered.

Selborne was founded in 2006 by its directors John McAllister, Michael Stratford, Simon Bishop and Peter Mooney, who all had “extensive” healthcare experience, though would not remain with the business post-completion, the CareTech board said.

The company had delivered year-on-year growth since it was founded.

In the year to 31 December, Selborne reported revenues of £13.3m and EBITDA of £2.4m.

Its net assets on a debt-free, cash-free basis at 31 August 2016 were £13.4m, and the acquisition included freehold properties carried in Selborne's balance sheet valued at £12.4m.

The acquisition, which was expected to be immediately earnings enhancing, was in line with CareTech's strategy of geographic expansion according to the board, and reportedly strengthened its presence and service offering in the Midlands and South West.

It would be financed from existing cash resources.

“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,” said Selborne chief executive Mike Stratford.

“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, said the firm was “delighted” to announce the acquisition of Selborne.

“The acquisition is immediately earnings enhancing.

“In line with our growth strategy, it extends our geographical reach and service offering to local authorities,” Sheikh explained.

“We continue to evaluate other acquisition opportunities to further consolidate our fragmented marketplace.”

More news

27 Jun US close: Weak consumer sentiment weighs on markets

Weaker-than-expected readings on consumer confidence weighed on Wall Street throughout Tuesday’s session.

27 Jun Directors dealings: Card Factory chief tops up stake

Card Factory's Karen Hubbard picked up some more shares in the company she leads.

27 Jun Europe close: Jump in single currency after Draghi speaks takes it toll

A more confident tone from European Central Bank chief Mario Draghi and a profit warning from a German auto parts maker combined to send stocks lower across the Continent.

27 Jun US open: Weak data weighs on shares, banks outperform

Weaker than expected readings on consumer confidence weighed on Wall Street early in the session even as investors eyed a speech by Federal Reserve chair Janet Yellen later in the day.

27 Jun FX round-up: GBP ahead on BoE buffer call and SNP's stance on indyref#2

Sterling enjoyed a minor rise on Tuesday on the back of Bank of England requiring lenders to beef up their cash buffer in case of bad debts.

27 Jun London close: Hike in banks' capital buffers hits shares

A stronger sterling weighed on the FTSE on Tuesday, as it emerged the Bank of England will force banks to further bolster their capital buffers to deal with bad debts .

27 Jun Ukraine struck by massive cyber attack, banks and government hit

A massive cyber attack has targeted much of Ukraine’s state infrastructure as IT systems in the country’s national bank and its largest airport shut down.

27 Jun Commodities: Crude futures rise on hopes of API data showing draw in US stores

Crude-oil futures are riding higher Tuesday as the market looks to industry data out later to show a draw in US stockpiles.

27 Jun Hardide receives Nadcap accreditation for its coatings

Advanced surface coating technology provider Hardide announced on Tuesday that Hardide Coatings had gained Nadcap accreditation for coatings.

27 Jun RedstoneConnect to install cabling at new Spurs stadium

Smart building and commercial spaces technology and services provider RedstoneConnect announced on Tuesday that it was awarded a contract to install an IT cabling infrastructure throughout Tottenham Hotspur's new 61,500 seat stadium.