Care home sale to net trio £2.5bn: Barchester Healthcare looks set to be bought by a private equity firm
Dermot Desmond (pictured) could share a £2.5bn pot with fellow Barchester Healthcare owners JP McManus and John Magnier
One of Britain’s biggest care home groups is to be put up for sale in a deal that could net its owners more than £2.5billion
The owners of Barchester Healthcare – the Irish business tycoons Dermot Desmond, JP McManus and John Magnier – have asked investment bank JP Morgan to assess their options for the firm, which most likely means its sale.
The businessmen own Barchester through their investment vehicle Grove Investments and a formal sale process could begin within weeks, sources said.
It is thought several buyers have already expressed an interest, but only offers higher than £2.5billion are being taken seriously.
Barchester owns more than 200 care homes that house 11,000 residents and employ 17,000 staff.
The Irish trio first invested in Barchester in 1994, a year after the company was set up by entrepreneur Mike Parsons.
Its attraction to a buyer, likely to be a private equity firm, is that its primary focus is on privately paying residents.
This means it is less beholden to local authority funding, which has plummeted in recent years.