CareTech purchases Selborne Care Limited for £16.9m
Hertfordshire social care firm CareTech has purchased Selborne Care Limited for £16.9m, to boost presence in the Midlands and South West.
Founded in 2006, Selbourne is a provider of specialist residential care, supported living and day care services for adults with learning disabilities and challenging behaviours.
The purchase, announced today, comes as the CareTech group posted a hike in revenues and profits during the first half of its financial year.
Farouq Sheikh, CareTech's executive chairman, said: "We are delighted to announce the acquisition of Selborne, a high quality business with a strong reputation in high acuity adult care and good growth prospects.
"I would like to welcome the Selborne team to CareTech.
"The acquisition is immediately earnings enhancing.
“In line with our growth strategy, it extends our geographical reach and service offering to local authorities.
“We continue to evaluate other acquisition opportunities to further consolidate our fragmented marketplace."
In 2016, Selborne, which is based in Droitwich in Worcestershire, reported revenues of £13.3m and EBITDA of £2.4 million.
Its net assets on a debt-free, cash-free basis at 31 August 2016 were £13.4m, and the acquisition includes freehold properties carried in Selborne's balance sheet valued at £12.4m.
The company has 57 residential beds in eight freehold sites.
Supported living services are provided to 30 service users. Innovative outreach and day services are also offered.
Chief executive Mike Stratford added: ''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.
“We are delighted to be handing over to CareTech who we believe share our commitment to customer focused, quality care and support services.”
CareTech supports adults and children with a wide range of complex needs in more than 260 specialist services around the UK.
It was founded in 1993, began trading on the AIM market of the London Stock Exchange in October 2005 under the ticker symbol CTH. Its property portfolio comprises more than 200 properties.
The acquisition will be financed from existing cash resources.