The UK’s largest care home provider, Four Seasons, is preparing to sell its mental health arm, Huntercombe, according to press reports.
Sky News has said the group, which is owned by equity firm Terra Firma Capital Partners, has appointed bankers PJT Partners to sell Huntercombe as part of restructuring moves designed to secure its long term future.
A spokesman for Four Seasons told Care Home Professional: “As we have said previously, the group is engaged in constructive discussions with key stakeholders to find a solution for the group’s debt and capital structure that is appropriate for the long term.
“Meanwhile, we continue to have sufficient financing for the medium term and we do not see this process having any effect on day to day care provision.”
Four Seasons reported last month that progress was being made in discussions over the future capital structure of the business (see Four Seasons reports progress on financial solution).
A spokesman said: “Discussions with key stakeholders are progressing, with the parties actively working to reach an agreement on the long-term capital structure of the business.
“Meanwhile, the group continues to have sufficient medium-term finances for its needs. Quality and standard of resident and patient care is our highest priority and we can’t envisage any scenario that would affect the quality of care for residents in our homes or patients in our specialist care units.”
Four Seasons group net debt stood at £513.8m at the end of the third quarter of 2016.
Group revenue was £174.3m, up 9% year on year. Occupancy rose to 89.6%, its highest level for three years and ahead of Knight Frank’s sector estimate of 88.4%