Caledonia Investments acquires Choice Care Group

7th Aug 2013 14:50

Caledonia Investments has acquired Choice Holdings, Truecare Holdings and Choice Pathways from Sovereign Capital.The acquisition of the three businesses, which together form Choice Care Group, was valued at £86m.Choice Care Group provides support services for adults with learning disabilities, mental health disorders or complex needs through a portfolio of 47 residential care homes, owned and operated in the South of England. Caledonia has subscribed £49.5m in cash at completion for an initial 97.7% stake with the balance of the equity being rolled over by Choice Care's management team led by Chief Executive, Edwina Johnston. Royal Bank of Scotland, AIB Group (UK) and Santander UK have provided £40m of senior debt financing. In the financial year to September 30th 2012, Choice Care Group generated earnings before interest, tax, depreciation and amortisation (EBITDA) of £8.9m, made profit before tax of £3.2m and had gross assets of £45.8m. Duncan Johnson, Caledonia's Head of Unquoted Investments, said: "We are delighted to back Edwina Johnston and her management team in the buy-out of Choice. "The group is recognised as a premium asset in the learning disability sector providing exceptional levels of care for its service users. Choice's estate is well invested and represents a solid platform for growth."RD