16th Nov 2006 07:03
CareTech Holdings PLC16 November 2006 For immediate release 16 November 2006 CareTech Holdings PLC ("CareTech" or the "Group") £15m acquisition of 13 homes from Counticare Holdings Limited CareTech Holdings PLC (AIM:CTH), a leading UK provider of learning disabilitycare services, is pleased to announce the acquisition of 13 freehold homes fromCounticare Holdings Limited together with the entire issue share capital ofCounticare Limited and Hazeldene UK Limited (together the "Acquisition") for acash consideration of £15 million. The Acquisition comprises 12 new homes inKent, with 101 beds and a day centre with a capacity of 150 places. TheAcquisition will be integrated with CareTech's existing 15 homes in the Kentarea. The Acquisition has been funded by the partial utilisation of the Group'sborrowing facility provided by CareTech's bankers, The Royal Bank of Scotlandfor which agreement has been reached for an increase to £60 million. Followingthe Acquisition, CareTech will have net indebtedness of approximately £50million. The accounts of Counticare Limited and Hazeldene UK Limited for the year ended31 March 2006 show a profit/(loss) from continuing operations before exceptionalitems, interest and taxation of £71,000 and (£25,000) respectively and netassets of £2,000 and £1,118,000 respectively. Under CareTech's ownership, thesecompanies will no longer incur significant property rental charges, as has beenthe case historically. The Directors anticipate that the Acquisition will be earnings enhancing in thecurrent financial year. Inclusive of the Acquisition, CareTech now operates 127 residential care homeswith a total capacity of 840 residential places, together with 5 day carecentres with a capacity of 229 day services places. Commenting on the Acquisition, Farouq Sheikh, Executive Chairman, said: "We are delighted to complete this Acquisition; our third acquisition sinceflotation. The Counticare homes complement our existing presence in Kent andcreate an exciting business for us in that region. The Acquisition furtherdemonstrates the Group's progress in achieving the growth strategy outlined atflotation. CareTech has now increased bed capacity since then by some 93%through organic and acquisition initiatives. The Board continues to evaluateselective acquisition opportunities to enhance value for our shareholders." ENDS For further information please contact: CareTech Holdings PLC 01707 652053 Farouq Sheikh, Executive Chairman David Spink, Finance Director Buchanan Communications 020 7466 5000 Diane Stewart Tim Anderson Brewin Dolphin Securities 0845 270 8600 Matt Davis Andrew Emmott Notes to Editors: CareTech which was floated on AIM in October 2005 is a leading provider ofspecialist residential care services to adult people with learning difficulties(PLD). CareTech's services are provided through 127 residential care homes and 5day centres located predominantly in the South of England and the West Midlands.Current overall capacity is 840 beds in residential services and 229 places inday services. The Company is headquartered in Potters Bar. Since formation in 1993, the Company has expanded organically through winningtenders and building new homes; and by acquisition - typically asset purchasesof single site care home operations. CareTech's strategy for growth is to takeadvantage of the supply shortage for high care standard PLD places and increasethe number of beds and homes it operates through the development of the existingportfolio, the establishment of new homes and by selected acquisition infragmented market. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CTH.L