Thu, 05 Apr 2018 | DIVISION SALE
The owners of the Care Management Group (CMG) have engaged an investment bank to help explore the sale of its dedicated care business in a deal expected to be worth around £150 million to £250 million.
CMG, which is mostly owned by Chai Patel’s Court Cavendish, another care home company, currently has 181 properties in the UK and Wales, an even mix of supported living and residential care homes, with ann occupancy rate of 90 per cent.
At current estimates, CMG could hope to get up to £250 million for the business, which has recorded 20 per cent growth in revenues on a yearly basis since 2015. Care homes alone delivered the group full-year revenues of £79 million and EBITDA of £20 million.
CMG was founded in 1996 by a parent looking after a child with learning disabilities. Court Cavendish, a specialist advisory group funded chiefly by Patel, then bought the business in 2008 and has invested heavily since then.
In a sector that has seen a lot of businesses change hands in recent months, the move is
being perceived as a good opportunity for CMG to make a decent profit on the division.
Patel himself scooped up 122 care homes for his company HC-One from fellow provider Bupa in August 2017, parting with £500 million to see the deal through.
An industry insider told Property Week: “They [had] already tried to sell the business in 2015.
“Now it is a good time to exit, as some of the largest infrastructure funds are moving into the market. There is a new pool of buyers that have decided to move into the space.”
Rothschild refused to comment on their reported involvement in the deal.
A spokesperson for CMG said that, while the company would not lend credence to rumours in the market, it could said this: “What is true is that we are exploring a wide range of options for the future strategy of this business.”
Presenting to the market a well established 2 surgery practice due to the vendors plans to reduce responsibilities. Income is derived from fee per item patients and a large capitation scheme which equates to 32% of the practice income.
LEASEHOLD
Operates on a national basis, providing highly skilled staff for clients including NHS and private hospitals, nursing homes and prisons, on a short- or long-term basis. Holds a number of framework agreements, enabling the company to supply staff to N...
LEASEHOLD
The business is a highly reputable domiciliary care agency with a strong focus, above everything, in providing high quality care and is committed to the goal of enabling people to lead a fulfilling and meaningful life within their own home.
LEASEHOLD
|
18
|
|
Sep
|
Crane hire business acquired in seven-figure deal | BUSINESS SALE
Liverpool-headquartered A Mini Crane Hire has been acquired ...
|
17
|
|
Sep
|
Scottish accountancy firm expands with two new acquisitions | BUSINESS SALE
Scottish accountancy firm Goldwells has expanded with the ac...
|
16
|
|
Sep
|
Plymouth window manufacturer rescued in buy-out | BUSINESS SALE
A Plymouth window manufacturing business that formed part of...
Sign up to receive our acquisition alert emails to get your FREE guide
|
21
|
|
May
|
HC-One care home operator on the market | BUSINESS SALE
HC-One, the UK’s largest care home provider, has been ...
|
26
|
|
Jun
|
NHP considers business sale | BUSINESS SALE
NHP, the company behind the UK's third-largest resident...
|
31
|
|
Jul
|
NHP to sell tranche of learning disability care homes | DIVISION SALE
NHP, the care home landlord, is to put 33 learning disabilit...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources