Mears Group buys Care UK Homecare businesses for £11.3m

1st Jun 2015 09:56

Social housing and care sector services provider Mears Group said on Monday that it has agreed to buy the Care at Home (CAH) division of Care UK Ltd for a £11.3m in cash.The unit provides community-based care services to over 10,000 services users in England, Wales and Scotland and has contracts with over 90 local authorities an Clinical Commissioning Groups, employing around 6000 staff.For the year ended 30 September 2014, CAH reported revenues of £72.2m and an operating loss before exceptional items of £2.6m.The purchase price comprises a base payment of £9m with a further payment of £2.3m made in respect of cash balances and excess working capital acquired on completion.Chief executive David Miles said: "I believe we have acquired one of our most significant competitors at an attractive valuation. Our focus will be upon enhancing service delivery thus enabling financial improvements."