Essential reading for the healthcare business
 
 
Remember me:
Skip Navigation LinksHealthInvestor article
Mears Group acquires Care UK’s domiciliary care service for £11.3m

Support services firm Mears Group has bought Care UK’s home care division, as was first reported by HealthInvestor, for a sum of £11.3 million.

The purchase price comprises of a base payment of £9 million with a further payment of £2.3 million made in respect of cash balances and excess working capital acquired on completion.

Care UK’s home care service looks after approximately 13,000 people across the UK and employs around 6,000 staff members.

For the year ended 30 September 2014, it reported revenues of £72.2 million and an operating loss before exceptional items of £2.6 million.

In a statement, Mears said Care UK had already started closing some branches of the domiciliary care business because of “particularly poor results in certain regions”.

The acquired assets will be renamed Mears Care and the management team will remain the same.

David Miles, chief executive of Mears Group (pictured), said: "I believe we have acquired one of our most significant competitors at an attractive valuation. Our focus will be upon enhancing service delivery thus enabling financial improvements.”

The acquisition  marks the completion of Care UK’s divestment strategy, which also saw it sell off its mental health and learning disability divisions. The private care provider has said it plans focus solely primary and secondary NHS health services and residential and nursing homes.

In May, Care UK sold its mental health assets, comprising of 322 beds, to Partnerships in Care for an undisclosed sum. It also sold its learning disability services group to Lifeways in the same month.

According to a press release, the three transactions, which had a combined annual ebitda of £12.9 million last year, have generated £130 million (before fees and expenses) for Care UK.

Mike Parish, chief executive of Care UK, said: “We are pleased to have reached very positive outcomes for patients and services users, colleagues and commissioners in all three services. The strategic review process which is now completed strengthens Care UK’s positioning for future growth within both the health and social care sectors.”

Rothschild advised Care UK on its divestments.


Related articles:

Posted on: 01/06/2015

Latest news stories

20/07/2018
Alchemy Dental Practice’s two dental practices in Stoke-on-Trent and Crewe have completed a management buyout.
20/07/2018
New health secretary Matt Hancock has emphasized that technology will be one of three top priorities under his leadership.
17/07/2018
Sovereign Capital Partners has exited Xendo, the pharmaceutical, medical devices and healthcare project management company it acquired in a management buyout in 2016.
16/07/2018
Barchester Healthcare, one of UK’s biggest care home groups, is being put up for sale in a deal valued at more than £2.5 billion, according to the Press Association.
16/07/2018
Hospital group Ramsay Health Care UK has launched a programme to encourage staff to challenge unsafe behaviour.


Civica


HealthInvestor blog
The health and social care sector needs to embrace gender diversity after disappointing pay gap results

Click here to view the HealthInvestor blog


Alcohol abuse in Scotland has cost the country dearly. Will imposing minimum pricing on alcohol have the desired affect on health and social care though? Clare Connell and Freddie Evans of Connell Consulting investigate
This year’s gender pay reporting revealed there is still an issue with equality in health and care. Sarah Williams digs into the numbers, and asks what companies can and should be doing about it
Private equity house August Equity tells Ploy Radford how its strategy of focusing on the smaller end of the mid-market is the best recipe for success
Outcomes First Group is developing pathways of care that will cover a person with special needs for life. CEO Graham Baker tells Ploy Radford how the company is achieving that in a tough funding and recruitment environment
The term ‘future-proof’ may be bandied about in health and care, but what do facilities designed to stand the test of time really look like? Sarah Williams takes a look across the sector

Click here to search all feature articles



architecture

The term 'future-proof' may be bandied about in health and care, but what do facilities designed to stand the test of time really look like? Sarah Williams takes a look across the sector
Read more


Christie + Co

my images



gender equality

This year's gender pay reporting revealed there is still an issue with equality in health and care. Sarah Williams digs into the numbers, and asks what companies can and should be doing about it
Read more














Search news
and features



Go




Bevan Brittan