Private equity takes over care homes group

Unions are worried over private equity getting its hands on the UK’s largest care home provider

Terra Firma, a leading private equity firm has announced that is has agreed an £825 million takeover of Four Seasons, the UK’s largest independent elderly and specialist care provider. The deal is expected to complete on or before 16 July 2012. at which point the existing debt liabilities of Four Seasons will be discharged in full.

The acquisition is to be financed through a mixture of equity and new debt, with the debt being arranged by Goldman Sachs and Barclays.

Four Seasons is the largest independent provider in a £15 billion market in the UK. The company operates 445 care homes, with 22,364 beds, and 61 specialist care centres, with 1,601 beds.

The GMB general union, which represents Four Seasons staff, is seeking urgent meetings with the government and Terra Firma.

Nationa officer Justin Bowden said: “The 20,000 residents and their families and 30,000 staff will need urgent assurances from the government and Terra Firma for a stable future.”

After the uncertainty leading up to this sale and refinancing, residents, their families and staff “desperately crave stability and calm”.

www.gmb.org.uk/newsroom/latest_news/terra_firma_buys_four_seasons.aspx?