£56 million paid in deal for six Shropshire company care homes
A Shropshire company was paid £56 million in cash and shares for six care homes, it has been revealed.
A healthcare real estate investment trust called Impact Healthcare REIT plc has paid Shrewsbury-based Morris Care the sum in cash and shares.
The six care homes will still use the name Morris Care and customers have been advised that they should see no difference.
Morris & Company says it plans to further invest in the healthcare sector and it is already planning new nursing home builds as part of its property growth plans.
The care homes have a total of 438 high quality beds, of which 400 have en suite bathrooms, with five homes in Shropshire and one in Cheshire.
Impact says the homes each have an established track record of delivering strong operational performance. Four of the homes have EPC ratings of B, and two are rated C, with outline strategies in place for achieving an EPC rating of B.
A statement said: "Morris Care enjoys a strong local reputation for delivering high acuity care and has established good working relationships with the local NHS Clinical Commissioning Groups. The vendors have granted a licence for the homes to continue to trade under the Morris Care brand for three years and the operational management team of Morris Care will transfer to Welford Healthcare (a tenant of Impact), which will operate the homes.
"Welford is an existing group tenant and the investment will take the group's relationship with Welford to 18 care homes across England with 1,087 beds."
The care homes included in the deal are: Isle Court Nursing Home (80 beds); Radbrook Nursing Home (63); Oldbury Grange Nursing Home (69); Morris Care Centre (96); Corbrook Park Nursing Home (80); and Stretton Hall (50).
The deal involves 80 per cent of the £56 million in cash (£44.8 million), with the balance paid in shares.
Impact has issued Morris 9,603,841 shares priced at 116.62 pence per share. Impact is using cash and shares, and is funding the investment in Morris initially by way of a loan to Welford.
A statement said: "The structure creates several benefits for all stakeholders, including enabling Welford to take immediate operational control of the six homes, thereby avoiding a potentially lengthy transition period while regulatory approvals are sought to register the operation of the homes in new legal entities."
It is seeking regulatory approval for the move from the Care Quality Commission.
The entire Morris Care team of 560 will continue to trade as Morris Care.
Robin Morris, chairman of Morris & Company said: “We are confident the transfer to Welford Healthcare as the new operator will ensure the continued high quality of care our residents have come to expect, whilst assisting our family company to make long term investments to meet our future aspirations.
“It is the dedication and professionalism of our outstanding care team that has ensured the Morris Care service, care and culture is of the highest standard. I should like to take this opportunity to thank chief executive Lucy Holl and every single member of the Care team for their hard work and wish them continued success going forward.”
Pete Madden at Welford Healthcare commented: “As we continue to implement our acquisition strategy focused on high-quality, well-performing care homes, we are delighted to welcome the Morris Care homes into Welford. We look forward to starting work with the team and resident communities.”
A Morris & Company spokesman added: "Today’s announcement presents opportunity for this fifth-generation family business to continue to invest in new developments, creating employment, supporting the community and fuelling the local economy."
