April 2008

CareTech Acquires Beacon Care

CareTech have recently completed the acquisition of Beacon Care, the provider of care to young adults with learning disabilities, including residential care and supported living schemes. Beacon Care has 16 homes based in the South East which are registered for 111 clients.

Consideration of up to £22.5 million was paid and the acquisition has been funded from partial utilisation of the Group’s new £120m bank facility, provided by the Royal Bank of Scotland and Allied Irish Bank.

Commenting on the acquisition, Farouq Sheikh, Executive Chairman, said:

“We are delighted to welcome Beacon to the Group. The acquisition will further strengthen our position in Southern England and increase our portfolio of quality freehold assets.

I believe that the Beacon team will complement and reinforce our existing team in the Southern region adding, in particular, in-house clinical support, which is increasingly required to support people with more complex requirements.

The Directors’ believe that CareTech’s ability to secure additional debt facilities at attractive terms, despite the current credit market, underlines both the strength of CareTech’s business model and the attractiveness of the consolidation opportunities. The Board will continue to evaluate further selective acquisition opportunities that will deliver outstanding results for our clients and enhance shareholder value.”

Financial advice was provided to CareTech by a team from Hazlewoods Corporate Finance lead by Andrew Brookes and Richard Dade. The team provided financial due diligence and lead advisory services on the acquisition.

Andrew Brookes commented “This was a particularly interesting transaction to have worked upon, given the structure of the group being acquired and the continued development of the target during the acquisition process.”

Legal advice was provided by a team from Pinsent Masons in Birmingham, lead by Ann McCarthy. The team provided a full suite of legal services on the acquisition.


For further information on this press release, please contact:

Andrew Brookes
LLP Corporate Finance Partner
ab@hazlewoods.co.uk
Tel: 01242 246670