27th Mar 2015 08:29
LONDON (Alliance News) - Cambian Group PLC Friday said it has acquired an independent fostering provider for GBP36 million and said it will conduct a GBP26 million placing to help fund it.
The provider of specialist behavioural health services said it has acquired By the Bridge, a fostering and residential care company, from a fund managed by Apposite Capital LLP.
Cambian said By the Bridge delivered revenue of GBP25 million and adjusted earnings before interest, tax, depreciation and amortisation of GBP5.2 million in 2014.
"The board believes that the proposed acquisition will be earnings enhancing in the first full year of ownership and expects the acquisition will achieve a return on capital employed of 25% within 5 years," said Cambian in a statement.
The company said the acquisition will be initially funded by debt and said it has increased its bank facilities to GBP35 million following the deal. However, Cambian will also conduct a placing to raise funds to be used to repay drawings under its bank facilities.
The placing will raise around GBP26 million and will be conducted with institutional investors. Cambian did not state how many shares would be issued, or at what price, but did say it would represent around 7% of the company's outstanding share capital.
Cambian shares were down 2.3% to 220.75 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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