Acquisition

CAMBIAN ANNOUNCES ACQUISITION OF BY THE BRIDGE

Cambian Group plc ("Cambian"), a leading provider of specialist behavioural health services in the UK, announces the acquisition of By the Bridge, an independent fostering provider, for an Enterprise Value of £36m from a fund managed by Apposite Capital LLP.

Operating at the high severity end of fostering, By the Bridge has built a reputation for providing high quality, therapeutic fostering and for being able to place children with complex needs in a family environment. By the Bridge occupies a niche position between traditional fostering and residential care. As of March this year, it cares for 516 children placed with 349 foster families, mainly in the South of England, the Midlands, Yorkshire and the North West.

By the Bridge has delivered strong historic growth with Revenue and EBITDA growing by c.11% and c.9% CAGR respectively over the last two years. In the twelve months to December 2014, By the Bridge generated revenues of £25m, with an Adjusted EBITDA* of £5.2m and Adjusted EBITA of £5.1m. As at 30 June 2014, the date of its latest audited consolidated accounts, it had gross assets of £15.3m. 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.

Cambian's childcare strategy is to position itself as providing a complete and differentiated service offering for Looked after Children. The Board believes the acquisition of By the Bridge is fully aligned to Cambian's strategy and provides the opportunity to increase both the scale of Cambian's fostering business to at least 1,200 Child placements within 5 years and its geographic reach. It also enables Cambian to take ownership of over 20 framework contracts and active placements with over 100 Local Authorities.

The Board is pleased that the senior management team of By the Bridge, led by Nicola Tunbridge, have agreed to remain with the business. Nicola will lead Cambian's fostering division and report directly to Anne Marie Carrie, CEO of Cambian Children's' Services.

The acquisition will be financed initially by debt, with Cambian having increased its bank facilities by £35m for this purpose. As separately announced today, Cambian has launched a proposed equity placing to raise approximately £26m which is intended to repay drawings on its loan facilities. The increased loan facilities will remain in place and provide Cambian with the financial flexibility to enhance organic investment above existing plans, or to make small bolt on acquisitions, where the Board believes such opportunities meet the Group's targeted returns and enhance earnings.

Commenting on the acquisition Saleem Asaria, Group Chief Executive Officer of Cambian, said: "I am delighted with this acquisition which is in line with our strategy to increase our scale in high severity fostering and the geographic range of fostering services we offer to Local Authorities. Differentiated through the therapeutic support it provides foster parents, delivering outstanding outcomes for local authorities and foster children, the acquisition of By the Bridge is another tangible step towards fulfilling Cambian's vision to provide a full continuum of care for children in the UK. Nicola Tunbridge has built an exceptional business and I look forward to her joining the Cambian team and taking responsibility for all of our fostering services.

Cambian's trading in the year to date has been in line with expectations, with continued growth in occupancy. Together with By the Bridge we look to develop a market-leading innovative fostering business".

* Adjusted EBITDA follows Cambian's definition, being earnings before net finance costs, tax, depreciation, amortisation, profit or loss on disposal of assets, exceptional items and M&A costs.

Ends

Enquiries:

Cambian Group plc +44 (0) 20 8735 6150

Saleem Asaria, Chief Executive

Andrew Griffith, Chief Financial Officer

Tulchan Communications +44 (0) 20 7353 4200

Tom Buchanan

Camilla Cunningham

Notes to Editors

About Cambian Group plc:

The Cambian Group is one of the UK's leading specialist behavioural health service providers. Founded in 2004, it has grown to become a significant partner to the UK Government. The Group's services have a specific focus on children and adults who present high severity needs with challenging behaviours and complex care requirements. Cambian employs approximately 6,800 people across a portfolio of 286 purpose-designed facilities located in England and Wales, comprising 26 schools, 38 hospitals, 219 specialist homes and 3 fostering offices.

About By the Bridge

By the Bridge is an independent fostering provider (IFP) specialising in therapeutic foster care for 516 children with 346 foster families located mainly in the South of England, the Midlands, Yorkshire and the North West.

By the Bridge places children and young people into specialist fostering care, providing a differentiated service due to the significant emphasis placed on selecting and training foster parents on how best to meet the challenging needs of their foster children.

Disclaimers

The securities referred to in this announcement have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act.