3rd Feb 2020 16:20
(Alliance News) - Mears Group PLC on Monday said it has sold its England & Wales Domiciliary Care business for GBP4.0 million, with a further GBP1.0 million of deferred consideration receivable over the coming twelve months.
The housing and social care provider said the business was sold to Cera Care Operations Holdings Ltd, and the proceeds from the transaction will be used to reduce indebtedness.
In 2019, the disposed business generated GBP36.0 million revenue, Mears said. The company also noted that 1,500 employees will depart from the firm following the transaction.
"We can be extremely proud of our achievements in care in terms of improving service delivery, workforce pay and conditions, but the sector remains underfunded and it has proved impossible to generate an adequate financial return," Chief Executive David Miles said, explaining the decision.
He added: "This [sale] will provide continuity for our customers and employees, at the same time as enabling us to focus our efforts where we can deliver superior returns for shareholders."
Mears shares were trading 0.4% higher in London on Monday at 306.20 pence each.
By Evelina Grecenko; [email protected]
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