Monday, June 05, 2006

Care homes are becoming big business

Britain's largest care homes operator Southern Cross Healthcare is to brave turbulent stock market conditions and go ahead with floatation expected to value the firm at around £500 million.

Southern Cross, which runs 578 homes for the elderly and provides long-term care to people with physical and learning disabilities, said on Sunday it plans to raise £275 million to boost services, cut debt and bolster its acquisition firepower.

The company was bought by American private equity firm Blackstone Capital Partners for £162 million in 2004. This means that in less than two years the venture fund has at least doubled its money! Not a bad return.

The company has put a figure of £11.7 billion on the value of the UK care market. Dick Stroud

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