Saga has sold Allied Healthcare to Aurelius Group, a pan-European, mid-market investor. The acquisition of Allied Healthcare comprises:
- Visiting Care: Britain’s largest provider of domiciliary care by market share and a provider of complex care services in the home to individuals with critical needs, commissioned by both local authorities and clinical commissioning groups (CCGs).
- Primecare: A provider of outsourced primary healthcare services, such as out-of-hours GP services, walk-in centres and dental practices, on behalf of public sector bodies in England including CCGs and National Health Service (NHS) Trusts. Additionally, Allied Nursing provides an agency service for temporary clinical/medical staff.
- Homecare Independent Living (HCIL): a home-based care and other housing and support services provider in which Allied Healthcare holds a majority interest, with operations in both Northern Ireland, where it is the leading domiciliary care provider, and the Republic of Ireland.
Allied Healthcare has over 12,000 employees and recorded revenues of £282m in 2014. Saga will receive total consideration of up to circa £19m. A one-off contribution of circa £10m will be made by Saga to the Allied pension fund, which will transfer as part of the transaction. Saga fully wrote down the value of its Allied business to zero as at 31st January 2015. Saga now expects to recognise a small net profit on the sale in the current year's accounts.
Commenting on the acquisition, Dirk Markus, Chief Executive of Aurelius Group, said, ‘As a non-core asset of Saga, Allied Healthcare is a special situation investment that meets the Aurelius investment criteria on many levels. Aurelius regards the acquisition of Allied as an opportunity to further grow and develop the Company’s market leading position in the visiting care market - a critical service that supports the community care sector. Allied is a mature business with strong fundamentals; it has suffered from a number of legacy operational inefficiencies but we are confident that these can be streamlined.’
Tristan Nagler, Managing Director of Aurelius in the UK, commented, ‘The enormous pressures facing vital UK care service providers like Allied Healthcare as a result of cuts to local authority funding and the impending introduction of the National Living Wage are well known. Aurelius’ operationally engaged approach means it is well positioned to give Allied the actively managed operational backing required to weather these challenges and ultimately build a strong and sustainable business in a sector that continues to grow year on year.’