HC-One has announced that it has agreed to buy 122 Bupa care homes, subject to regulatory approval.
Confirmation of the deal comes more than a month after Care Home Professional revealed that an agreement had been struck (see EXCLUSIVE: HC-One to buy Bupa care homes).
The £300m deal will see Bupa retain around 150 care homes and six Richmond Villages caring for over 9,000 residents, with a further four care homes and two retirement villages under construction.
HC-One Chairman, Dr Chai Patel, said: “The acquisition is the latest step in the expansion of our provision of the very best and kindest care. The homes we have acquired from Bupa are dispersed across the UK, and demonstrate HC-One’s ongoing strategy to focus on strong regional growth.
“HC-One’s growth is financially sustainable – our debt levels are both prudent and manageable – and our ever strengthening and stable financial position means residents will continue to receive the kindest high-quality care through a range of specialist services and equally that we will continue to invest in our staff.”
Equity for the deal was provided by StepStone Real Estate and Safanad, and the debt funding was arranged by Deutsche Bank and Apollo Global Management LLP. Gleacher Shacklock LLP acted as exclusive financial adviser to HC-One on the transaction, and legal counsel was provided by Stephenson Harwood and Skadden, Arps, Slate, Meagher & Flom (UK) LLP.
David Hynam, Chief Executive Officer, Bupa UK, said: “We remain one of the main providers of residential care in the UK, and a major investor in the sector. This move enables us to focus our investment to continue to provide high quality care for our residents, both now and in the future. This year, Bupa will invest more than £120m into refurbishing existing homes and building new care homes and retirement villages.
“Bupa and HC-One have a shared commitment to excellence in care. We will work together over the coming months to ensure there is minimal change for residents and their families, and that they continue to receive the high quality care from the same dedicated teams.”