HC-ONE Acquires Meridian Healthcare 30 Home Portfolio
February 8, 2015 – The owners of Meridian Healthcare Group have chosen HC-One for the sale of its 30 homes company, in a deal which will ensure the continued provision of the very best care in Greater Manchester, Merseyside, West Yorkshire, North Lincolnshire, Cheshire and Derbyshire.
Over the last 15 years Meridian Healthcare has grown to be an outstanding provider with a record for excellence. Meridian now operates across 30 locations, with 1,500 registered beds, over 1,200 dedicated staff, and has an admirable record of service delivery and staff development.
Meridian is currently the 32nd largest care provider in the UK, with an annual income of £32.9m and Home EBITDAR of £13.5m (March 2014). The expected Home EBITDAR for the year ending 31st March 2015 is £14.5m.
The acquisition of Meridian forms part of HC-One’s plans to acquire further homes and diversify the care provided to include retirement villages, residential, nursing and home care. HC-One aims to become an integrated health and social care provider working in collaboration with public sector commissioners to deliver high quality and cost effective services.
In November 2014, HC-One was acquired by Formation Capital, Safanad and Court Cavendish in a £477m deal that has brought new investment. The lead investor that financed the deal was HCP. Continuing their support of HC-One’s transformation and expansion, the acquisition has been financed through additional investment from Formation Capital, Safanad and Court Cavendish and additional financing from HCP, lead investor in the HC-One financing. HC-One’s strong financial position will ensure Residents at Meridian homes continue to receive the highest quality care through a range of specialist services.
Steve Fishman, President and Co-Chairman of Formation Capital, said:
“The Meridian acquisition is a fantastic development for HC-One. As an outstanding regional provider, with an excellent track record, HC-One is an ideal partner to provide financial strength and stability.
“The acquisition represents the next step on our continued development of the estate, and development of the HC-One team to the benefit of residents and broader stakeholders.”
Kamal Bahamdan, Founder and Chief Executive Officer of Safanad, said:
“We are pleased to continue to expand our successful US partnership with Formation Capital and Dr Chai Patel. We are delighted that Meridian will form part of our healthcare platform in the UK.”
Lauralee Martin, President and CEO of HCP, said:
“We are pleased to continue our relationship with the UK’s premier national operator, HC-One, led by Dr Chai Patel and his talented management team. Formation Capital and Safanad remain valuable partners to HCP and this deal allows us to accretively expand our UK investments.”
Dr Chai Patel, HC-One Chairman and Acting CEO, said:
“We are delighted that the owners of Meridian have chosen HC-One to acquire the company. As a high quality regional provider, their care levels match our ambition to operate the kindest homes, with the kindest, most professional staff, to make a real difference to the lives of older people in the UK. We look forward to sharing and learning best practice together, and continuing their great work with our commissioning partners.
“We welcome these excellent homes, their Residents and dedicated staff as we continue on our journey to become the country’s kindest care provider.”