23rd Oct 2018 08:37
LONDON (Alliance News) - FTSE 250-listed investment firm Caledonia Investments PLC said Tuesday majority-held supported living services firm Choice Care Group was being sold for GBP152.5 million to iCON Infrastructure Partners IV LP.
Caledonia - which owns a 87.4% stake in Choice Care - will receive GBP99.4 million in cash from the sale, excluding fees. The sale proceeds include GBP7.1 million in pre-sale dividends.
Caledonia acquired an initial 97.7% stake in Choice Care in 2013 for GBP49.5 million in cash. Since then, Caledonia has invested a further GBP5.4 million in the Choice Care business whilst receiving - excluding the above payment - GBP6.1 million in dividends.
During this period, Caledonia expanded Choice Care's residential capacity by 32% to 514 from 391 beds.
Choice Care was held on the book of Caledonia at a valuation of GBP93.2 million as of the end of September.
"Caledonia's unquoted strategy is to invest in leading businesses with quality management teams, seeking long-term capital," Caledonia Head of Unquoted Investments Duncan Johnson said.
"We are delighted with how Choice has grown under our ownership, enabling it to provide its high quality residential services to a third more patients than five years ago. We wish them and the company every success under their new ownership."
Shares in Caledonia were 0.9% lower at 2,690.00 pence on Tuesday.
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