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MBH taps into care sector through Samuel Hobson deal
Posted on Wednesday, 21 August 2019 12:52
Investment holding company MBH, through its subsidiary Acacia Training, is buying UK-based Samuel Hobson Care Homes and associated property assets in an all-share transaction.

The total purchase price will be between GBP 2.20 million and GBP 2.60 million and the deal is due to close by the end of 2019, subject to executed legal completion contracts.

Samuel Hobson’s property assets are valued at around GBP 1.80 million in the transaction, which is included within the consideration.

Based in Newcastle-under-Lyme, the target is a three-story care facility, which provides 39 beds for patients aged 65 and over who have dementia.

Victoria Sylvester, managing director of Acacia, said: “Our history is in health and social care having started the business in a care home in 2000, so Samuel Hobson House provides a fantastic alignment and perfectly dovetails into our current structure.”

Through the purchase, MBH taps into a GBP 15.90 billion sector in the UK, comprising 5,500 providers, which operate 11,300 care homes for around 410,000 elderly residents across the country, according to a 2017 study by the UK government’s Competition and Markets Authority.

A deal represents entry into a new industry for the acquiror, having previously invested in companies specialising in construction, education and engineering services.

The transaction with Samuel Hobson follows MBH agreeing to buy Singapore-based Asia Pacific Energy Ventures in June in its largest acquisition to date, for a sum expected to be between GBP 26.00 million and GBP 35.00 million.

According to Zephyr, the M&A database published by Bureau van Dijk, 62 deals have been announced worldwide so far in 2019 targeting continuing care retirement communities and assisted living facilities for the elderly.

In the largest of these by value, Sofina sold a 1.6 per cent stake in France-based Orpea to undisclosed investors for EUR 331.27 million.

© Zephus Ltd