4th Nov 2013 14:35
LONDON (Alliance News) - CareTech Holdings PLC Monday said it has acquired the majority of the business and assets of Elmfield Training Ltd out of insolvency for GBP1.5 million in cash, and expects the deal to boost earnings in the first full year of ownership.
It bought the assets in a deal known as a pre-pack, where the arrangements are done just before or as a company enters insolvency. Elmfield is a provider of apprenticeship and vocational training.
CareTech said it would use its own cash to fund Elmfield's working capital costs.
The deal will enable CareTech to provide apprenticeship and pre-employment training under a rebranded business called EQL Solutions.
"EQL Solutions is expected to be earnings enhancing in the first full year of ownership," CareTech said in a statement.
Under the terms of the acquisition, CareTech will take over the responsibility for the operation of all of Elmfield's client contracts apart from a high-profile contract with Morrisons.
CareTech shares were Monday quoted at 226 pence, down 2.0%.
By Samuel Agini; [email protected]; @samuelagini
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