Acquisition

RNS Number : 7141L

Mears Group PLC

04 August 2011

 



4 August 2011

Mears Group PLC

("Mears" or "the Group")

Acquisition of certain business assets from Choices Care Community Services Limited (in administration) ('Choices')

Mears is pleased to announce the acquisition of the Supported Living division of Choices, a leading provider of Social Care services in Scotland and the North of England.  The main business of Choices is the provision of a supported living service to adults with learning disabilities, autism and mental health needs, in their own homes.  Service recipients tend to have a more complex care support package than can be seen in the more traditional domiciliary care area, due to the higher acuity needs of the individual.

At the time of its final results in March of this year, the Board stated its strategy was to broaden the diversity of Mears' domiciliary care offering and to begin supplying services to individuals with higher acuity needs in their own homes. The acquisition of Choices fits well with this criteria and is consistent with our strategy of targeting growth in higher need care areas.

Mears has acquired the trade and certain assets of the Supported Living division for a total cash consideration of £7.40 million.  The consideration includes a refundable deposit of up to £5.0 million dependent upon the successful novation of the acquired contracts. The consideration is being satisfied from the Company's existing debt facilities. The gross assets of the business being acquired are £150,000, and the annualised operating profit associated with the assets being acquired is estimated to be in the region of £1.50 million. 

We will look to integrate the acquisition into our Care division which already has a strong presence in Scotland.  The principal benefits of the acquisition are anticipated to arise in 2012 and beyond. It is expected to be earnings neutral for the year ending 31 December 2011 after the costs of restructure and earnings enhancing for the year ending 31 December 2012.  

Choices is recognised by both Scottish and English authorities for the quality of care the Company provides.  Mears believes that this acquisition will give our Care division the scale and competence to win more contracts of this nature across the rest of the UK.

Commenting, David Miles, Chief Executive, Mears Group, said:

"This acquisition is the first step towards implementing our stated strategy to develop a broader care offering to our clients.  The Social Care market has significant opportunities for organic growth and for further acquisitions. I am delighted to welcome a further 500 employees into the Group."

ends.

About Mears

www.mearsgroup.co.uk

(tickers: MER.L MER.LN  MER.PL)

Mears is a leading social housing repairs and maintenance service provider to Local Authorities and Registered Social Landlords in the UK and commands a leading position in the UK Local Authorities' outsourced domiciliary care market, providing personal care services to people in their own homes.

Mears employs in excess of 12,000 people and provides maintenance and repairs services to in excess of 10% of the UK social housing stock. Mears also provides over 150,000 hours of domiciliary care to 20,000 service users each week.

Enquiries:
Mears Group PLC
David Miles, Chief Executive	Tel: [phone]
Andrew Smith, Finance Director	Tel: [phone]
Bob Holt, Chairman	Tel: [phone]
Joint Broker - Investec
Keith Anderson/Daniel Adams	Tel: [phone]
Joint Broker - Collins Stewart
Mark Dickenson/Ileana Antypas	Tel: [phone]
IR - Gable Communications	Tel: [phone]
John Bick/Justine James	Tel: [phone]

 

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