City law firm GSC Solicitors LLP is delighted to announce that it advised Belgravia Investments Limited and Kensington Capital Limited as part of a consortium on its recommended £870.3m cash and share acquisition of the entire issued and to be issued share capital of AIM listed CareTech Holdings PLC (“CareTech”). The public-private transaction values the group at £1.2bn.
Founded in 1993 and listed on AIM in 2005, CareTech is one of the UK’s biggest social care providers that runs hundreds of residential homes and specialist schools across the country for adults and children with complex needs.
Commenting on the deal GSC senior partner Saleem Sheikh said: “This innovative transaction will help fund the expansion of CareTech’s technology division and presence across the Middle East.”
In recent years, CareTech has expanded into the Gulf region through buying majority stakes in AS Group, Wellness Group, and home healthcare firm Dmetco-Bayti, all of whom are based in the United Arab Emirates.
The GSC team was led by senior partner Saleem Sheikh and included corporate partner Clive Halperin and international private wealth partner James Cohen.
CareTech is a public limited company incorporated in England and Wales whose shares are admitted to the AIM-market of the London Stock Exchange. CareTech is the UK’s biggest provider of private children’s homes with about 8 per cent of that market, generated £490mn in revenue in its latest financial year, up 14 per cent from a year earlier, on underlying pre-tax profit of £68mn. Its property portfolio is valued at close to £1bn.
The business, which began with a single home in 1993, has expanded to take about 5 per cent of the fragmented £12bn market. The group has 160 properties and offers almost 5,000 places to support adults and children with complex needs in the UK.
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