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Aurelius takes Allied Healthcare off Saga’s hands

European investor Aurelius Group has acquired Allied Healthcare, the UK’s largest home care business, from Saga for £19 million.

Saga announced at the start of the year that it planned to exit the market for publicly funded care by selling Allied because of tightened local authority budgets.

Over 50s service provider Saga will make a one-off £10 million contribution to Allied Healthcare's pension fund as part of the deal.

Allied’s assets include: Visiting Care, the domiciliary care service; Primecare, an out-of-hours primary care service which includes staffing agency Allied Nursing; and Homecare Independent Living, a home care and housing and support services provider in Northern Ireland and Ireland, which Allied has a stake in.

Allied Healthcare has over 12,000 employees and in 2014 reported revenues of £282 million. Saga completely wrote off the value of Allied Healthcare from its balance sheet in January.

The company announced it expects to make a small profit from the disposal.

Dirk Markus, chief executive of Aurelius Group (pictured), said: “As a non-core asset of Saga, Allied Healthcare is a special situation investment that meets the Aurelius investment criteria on many levels. Aurelius regards the acquisition of Allied as an opportunity to further grow and develop the company’s market leading position in the visiting care market - a critical service that supports the community care sector. Allied is a mature business with strong fundamentals; it has suffered from a number of legacy operational inefficiencies but we are confident that these can be streamlined.”

Tristan Nagler, managing director of Aurelius in the UK, added: “The enormous pressures facing vital UK care service providers like Allied Healthcare as a result of cuts to local authority funding and the impending introduction of the national living wage are well known. Aurelius’ operationally engaged approach means it is well positioned to give Allied the actively managed operational backing required to weather these challenges and ultimately build a strong and sustainable business in a sector that continues to grow year on year.”

Greenhill& Co. advised Saga on the deal.

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Posted on: 01/12/2015

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