Leading care home provider Four Seasons could be sold for as little as £400m, according to a press report.
The FT reported that Four Seasons, which has attracted a number of bids, could be sold for £400m-£600m, potentially less than half the £825m the business was sold for seven years ago.
Bidders are believed to include H2 Capital Partners, the company’s largest creditor, asset management and investment company, Cheyne Capital, US-based Davidson Kempner Capital Management and property investor, Roundhill Capital.
The speculation comes as efforts to sell fellow leading care home operators, Barchester Healthcare, Care UK and HC-One have reportedly failed.
Julian Evans, Head of Healthcare at Knight Frank, said Four Seasons represented a “significant turnaround opportunity”.
The sale excludes 24 more profitable homes, which are owned by Terra Firma and are believed to be on the market for around £200m.
Property investor Patron Capital Partners and Renaissance Care, which is owned by Four Seasons founder Robert Kilgour, are believed to be interested in the 24 homes.
The Four Seasons sale is being handled by BDO. Administrator Alvarez & Marsal has said it is hoping to have a deal by the end of the year.
A spokesperson for Four Seasons Health Care Group said: “We are very encouraged by the levels of interest and active engagement from bidders and reiterate that nothing has changed in terms of our aim that the process achieves a whole group solution. In the meantime, our highly professional colleagues continue to work hard to provide their usual quality care across our homes and hospitals.”