CMG considers sale of specialist care business

Thu, 05 Apr 2018 | DIVISION SALE

The owners of the Care Management Group (CMG) have engaged an investment bank to help explore the sale of its dedicated care business in a deal expected to be worth around £150 million to £250 million.

CMG, which is mostly owned by Chai Patel’s Court Cavendish, another care home company, currently has 181 properties in the UK and Wales, an even mix of supported living and residential care homes, with ann occupancy rate of 90 per cent.

At current estimates, CMG could hope to get up to £250 million for the business, which has recorded 20 per cent growth in revenues on a yearly basis since 2015. Care homes alone delivered the group full-year revenues of £79 million and EBITDA of £20 million.

CMG was founded in 1996 by a parent looking after a child with learning disabilities. Court Cavendish, a specialist advisory group funded chiefly by Patel, then bought the business in 2008 and has invested heavily since then.

In a sector that has seen a lot of businesses change hands in recent months, the move is
being perceived as a good opportunity for CMG to make a decent profit on the division.

Patel himself scooped up 122 care homes for his company HC-One from fellow provider Bupa in August 2017, parting with £500 million to see the deal through.

An industry insider told Property Week: “They [had] already tried to sell the business in 2015.

“Now it is a good time to exit, as some of the largest infrastructure funds are moving into the market. There is a new pool of buyers that have decided to move into the space.”

Rothschild refused to comment on their reported involvement in the deal.

A spokesperson for CMG said that, while the company would not lend credence to rumours in the market, it could said this: “What is true is that we are exploring a wide range of options for the future strategy of this business.”


Share this article



Latest Businesses for Sale

Mobility & Aided Equipment Retailer
Clitheroe, Lancashire, UK Wide

Well known mobility store. An excellent opportunity to acquire a very well-known, thriving mobility store, run from deceptively spacious premises which occupies a prime position within Clitheroe. Offers invited.

Asking Price: £370,000
Turnover: £600,000

Denture Manufacturer
Wales, UK

Manufacturer and supplier of Dentures to the Dential industry, also supplying related products to a number of clients within the industry. Offers invited.

Asking Price: Offers Invited
Turnover: £700,000

LEASEHOLD


Residential Care Home
Middlesbrough, UK Wide

Long established & CQC highly rated learning disability and mental health specialist registered for 15 with impressive reputation and public sector referral client base operating from stunning detached premises. Offers invited.

Asking Price: £1,950,000
Turnover: £572,474

FREEHOLD



View more businesses for sale

News Search

Latest News

 
17
 
May
 

Greater Manchester staffing firm acquires security services company | BUSINESS SALE

A security services business headquartered in Newton-le-Will...

 
16
 
May
 

Midlothian IT company enters administration with assets up for sale | ADMINISTRATION

An Edinburgh-based IT firm has collapsed into administration...

 
15
 
May
 

Logistics recruiters and distributors snaps up Birmingham-based counterpart | BUSINESS SALE

Challenge TRG Group, headquartered in Wigan, has successfull...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
21
 
May
 

HC-One care home operator on the market | BUSINESS SALE

HC-One, the UK’s largest care home provider, has been ...

 
26
 
Jun
 

NHP considers business sale | BUSINESS SALE

NHP, the company behind the UK's third-largest resident...

 
31
 
Jul
 

NHP to sell tranche of learning disability care homes | DIVISION SALE

NHP, the care home landlord, is to put 33 learning disabilit...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources