CDN
08/08/2013 08:30
ASSET
REL: 0830 HRS Caledonia Investments Plc
ASSET: CDN: Portfolio Acquisition
Caledonia Investments plc
CALEDONIA INVESTMENTS PLC ACQUIRES THE CARE HOMES OPERATOR, CHOICE CARE GROUP
Caledonia Investments plc ("Caledonia") is pleased to announce that it has
acquired Choice Holdings Ltd, Truecare Holdings Ltd and Choice Pathways Ltd
(together "Choice Care Group" or "Choice" or the "Group") from Sovereign
Capital in a transaction which values the business at GBP86 million. Choice
Care Group provides support services for adults with learning disabilities,
mental health disorders or complex needs through a portfolio of 47
residential care homes, owned and operated in the South of England.
Caledonia has subscribed GBP49.5 million in cash at completion for an initial
97.7% stake, the balance of the equity being rolled over by the management
team led by Chief Executive, Edwina Johnston. The Royal Bank of Scotland plc,
AIB Group (UK) plc and Santander UK plc (together "the Banks") have provided
GBP40 million of senior debt financing. Both Caledonia and the Banks have
committed to provide additional capital to fund the future development of
Choice supporting management's growth plans for the Group.
Edwina Johnston has led Choice since 2009 as CEO and was previously the
Group's CFO from 2002. She has overseen the development of Choice into the
leading care business it is today. Choice places the delivery of care at the
heart of its business model seeking to deliver positive care outcomes for its
service users at all times. Choice enjoys 100% CQC compliance.
For the financial year to 30 September 2012, Choice Care Group generated
EBITDA of GBP8.9 million, made combined profit before tax of GBP3.2 million
and had gross assets of GBP45.8 million. From the outset, Choice will pay a
running yield to Caledonia that is forecast to build over the life of the
investment.
Commenting on the acquisition, Duncan Johnson, Caledonia's Head of Unquoted
Investments, said:
"We are delighted to back Edwina Johnston and her management team in the
buy-out of Choice. The group is recognised as a premium asset in the
learning disability sector providing exceptional levels of care for its
service users. Choice's estate is well invested and represents a solid
platform for growth.
We look forward to a rewarding relationship with Edwina, Choice and its
service users in the years ahead."
Edwina Johnston commented:
"It is great to have the backing of Caledonia and their long term support for
our continuing investment plans. Under their ownership we can continue our
expansion plans, adding new homes across the South, as well as maintain our
continuous improvement plans across our portfolio ensuring we maintain our
reputation for the very highest standards of care for our service users."
Will Wyatt, CEO of Caledonia commented:
"Our investment in Choice represents another positive step in the development
of Caledonia's unquoted investment business, building upon our reputation as
a measured, long-term investor in the unquoted arena. Choice fits well with
the investment criteria we have set out to shareholders and I am confident it
will deliver positive returns from the continuing growth of the business."
7 August 2013
For further information contact:
Caledonia Investments plc
Will Wyatt,
Chief Executive +44 20 7802 8080
Duncan Johnson,
Head of Unquoted Investments
Media contact:
Tulchan Communications
Peter Hewer +44 20 7353 4200
Katerina Soumilova
END
Notes for editors:
Caledonia Investments plc
Caledonia is a self-managed investment trust company listed on the London
Stock Exchange with net assets of approximately 1.3bn. The company maintains
a concentrated portfolio of international quoted, unquoted and fund
investments and has paid an increasing dividend for 45 years.
In the unquoted arena, Caledonia seeks to invest 20 to 50 million in private
companies either on a majority or minority basis in situations where it
believes there to be a good opportunity for building value over the longer
term.
For additional information on Caledonia, please visit www.caledonia.com.
Neither the contents of the company's website nor the contents of any website
accessible from hyperlinks on the company's website (or any other website) is
incorporated into, or forms part of, this announcement.
Choice Care Group
Choice is headquartered in Reading, Berkshire and operates in the surrounding
regions. The business owns and operates 47 residential care homes for people
with Learning Disabilities or mental health disorders. In addition, through
its subsidiary, Excel Support Services, the Group provides supported living
services for additional service users in the same areas.
Choice employs in excess of 1,200 employees throughout the business.
Choice's strategy is to develop additional homes in its current areas of
geographical focus as well as entering adjoining counties via new home
development. Choice's business model and measured growth plans result in the
delivery of care being placed at the heart of the business.
For additional information on Choice, please visit www.choicecaregroup.com.
Neither the contents of the company's website nor the contents of any website
accessible from hyperlinks on the company's website (or any other website) is
incorporated into, or forms part of, this announcement.
Transaction
The transaction was led by Charlie Edwards, Duncan Johnson and Sally Flanagan
on behalf of Caledonia. Caledonia was advised by Osborne Clark (Mark Spinner
and Ben Truman), DC Advisory (Richard Clark and Phillip Gutzwiller), Connell
Consulting (Clare Connell), Deloittes (Tim Haden) and Catalysis (Mike Hicks).
Insurance advice was provided by both JLT and Aon. PricewaterhouseCoopers
(Jason Wakelam) provided financial due diligence advice.
Banking facilities to support the transaction have been provided by RBS, AIB
and Santander. The transaction was led on behalf of the banks by Mark Ward
(RBS) with advice from Hogan Lovells (Stuart Brinkworth).
The Management team was advised by Chris Spanoudakis from Equita Corporate
Finance as well as by CMS Cameron McKenna.
Sovereign Capital was advised by Jefferies International and CMS Cameron
McKenna.
End CA:00239398 For:CDN Type:ASSET Time:2013-08-08 08:30:07
