Terra Firma completes acquisition of Four Seasons Health Care
Posted July 12th 2012
Terra Firma, a leading private equity firm, is pleased to announce the completion of the acquisition of Four Seasons, the UK’s largest independent elderly and specialist care provider.
The company is being acquired for a total consideration of up to £825 million which will be financed through a mixture of equity and new debt, with the debt being arranged by Goldman Sachs and Barclays.
Four Seasons is the largest independent provider in a £15 billion market in the UK. The Company operates 445 care homes, with 22,364 beds, and 61 specialist care centres, with 1,601 beds. Over the last few years, Four Seasons has led the sector in the development of higher dependency care services.
Commenting on today’s announcement, Guy Hands, Chairman and Chief Investment Officer of Terra Firma, said:
“Four Seasons’ debt has been very substantially reduced, bringing stability to the company. Terra Firma is committed to further investment in the business to achieve long-term sustainable growth.
“Our number one priority is to ensure that Four Seasons delivers consistent high-quality care and peace of mind for residents, service users and their families. With a stable capital structure and clear ownership, Four Seasons will be able to lead the sector in terms of quality of service.”
About Terra Firma
Terra Firma is a leading private equity firm which specialises in buy-outs of large, asset-rich and complex businesses. Terra Firma creates values for those businesses and its investors by delivering improved strategy, operations and management. Since being set up in 1994, Terra Firma has invested over €13 billion of equity and completed transactions with an aggregate enterprise value of €44 billion.
About Four Seasons
Four Seasons is the leading independent provider of health and social care in the UK. It operates 445 care homes and 61 hospitals and specialist units in the UK, Isle of Man and Jersey. It employs more than 30,000 staff caring for more than 20,000 residents.
During 2011, Four Seasons increased its bed capacity by 40% by acquiring the business of Care Principles and taking over homes from Southern Cross Healthcare. Occupancy has continued to increase against the sector trend at circa 88%-89%. Four Seasons maintains a balance of freehold and leasehold properties, owning circa 60% of the facilities it operates so it is not over-exposed to rental costs.
Four Seasons ranks among the highest rated quality of care providers with circa 88% its homes in England rated good or excellent by the Care Quality Commission inspection ratings. It has taken a sector lead in the development of specialist services for residents with higher dependency needs including nursing care for infirm elderly, respite, step-up and step-down care and an award winning specialist dementia service that is studied by care providers internationally.