Care Home Operator Four Seasons Health Care Group Up for Sale for £300m
One of Britain’s largest care home operators, Four Seasons Health Care Group, is being put up for sale in a move expected to fetch about £300m. According to sources, Four Seasons has appointed CBRE, the property agent, to oversee an auction in the coming months.
This decision comes after a significant period of transformation for the company, which has been reshaped and slimmed-down through a series of asset sales. Despite being smaller than it was before the pandemic, Four Seasons still employs over 4,000 people and operates more than 45 freehold care homes. It provides care for thousands of residents under both the Four Seasons and Brighterkind brands.
In 2022, Joe O’Connor, a restructuring professional and experienced care sector turnaround expert, was appointed as the company’s chief executive. Under his leadership, the company has shown significant improvement in its performance, as demonstrated by its recently published quarterly results.
Based on its current financial performance, healthcare analysts estimate that the company is worth around £300m. As a result, the business is expected to attract interest from a variety of financial and industry bidders, according to sources in the property industry.
One financier noted that a recovery in healthcare asset valuations has made it a logical time to launch a formal sale process for Four Seasons.
Four Seasons’ parent company, Elli Finance, went into administration in 2019, with Alvarez & Marsal appointed to oversee the insolvency. It had been owned by Terra Firma Capital Partners, the private equity vehicle founded by financier Guy Hands, since 2012.
However, it is worth noting that the care homes themselves have not been involved in any insolvency proceedings during the past five years. Additionally, the company’s ratings from the Care Quality Commission have consistently exceeded those of many industry rivals.
Terra Firma had acquired Four Seasons for £825m, but the company’s £500m-plus debt had been the subject of prolonged restructuring negotiations. Four Seasons could not be reached for comment on the upcoming sale.