News Releases
31st August 2006
£1.4 billion acquisition of Four Seasons Health Care
Three Delta LLP, the structured finance house in the private equity arena, announces the successful completion of its acquisition of Four Seasons Health Care, one of the leading independent health care providers in the UK, from Allianz Capital Partners for £1.4 billion.
Dresdner Kleinwort acted as sole financial adviser to Allianz Capital Partners in connection with the disposal of Four Seasons.
Four Seasons Health Care operates over 400 nursing and care homes and specialised care centres in England, Scotland, Northern Ireland and Isle of Man, employing 21,000 staff to provide beds for almost 20,000 people. The acquisition underpins Three Delta's investment focus on asset backed acquisitions with best in class management and strong cash flow fundamentals.
The acquisition doubles Three Delta's existing asset portfolio and further consolidates its position in the healthcare sector with investments totalling over £3 billion.
Three Delta Principal Paul Taylor commented: "We are delighted to announce the successful completion of the Four Seasons acquisition. We have every confidence in Tony Heywood and his team and their commitment to continuing to improve standards in quality of care, and ensuring that they reflect best practice and regulatory requirements. We look forward to fusing their sector expertise with our financial structuring capability.
"We believe that the existing supply/demand differentials and strong demographics will continue to drive growth in the sector. The Government Actuary Department has estimated that between 2001 and 2021 the projected population over 65 years of age will increase by almost 60%.
"During the same period, the number of people per year requiring institutional care will increase by 115,000. Despite this, regulation has meant that a number of smaller care home providers have been faced with closure and additional staffing problems have meant that increasing capacity has proved problematic. We believe that Four Seasons' Care Homes are well placed to counter this trend and we expect to witness consolidation in the sector in the future."
