HC-One, the largest care home operator in the United Kingdom, is for sale for £1 billion, according to a report from FT.
Corporate finance boutique Gleacher Shacklock has been chosen to act on the sale, FT reported, citing sources familiar with the matter. U.S. real estate investment trusts (REITs) and Asian insurers, as well as private equity investors like KKR, are expected to be interested in purchasing HC-One, FT added, citing sources close to the sale.
Darlington-based HC-One is currently led by CEO Justin Hutchens, who joined the company in October 2017 after serving for less than a year as president of Irvine, California-based health care REIT HCP Inc. Currently, HC-One operates 369 registered care homes, at which seniors can receive various types of publicly funded services, including dementia care, nursing care, specialist care and residential care.
At the time of Hutchens’ hire, then-Chairman and CEO Dr. Chai Patel claimed Hutchens would “lead HC-One through the next crucial phase in its journey from turnaround to transformation.”
Then, in August 2017—two months before Hutchens officially became CEO—HC-One announced its plan to purchase 122 care homes from Bupa, a London-based health care company that comprises care home operator Bupa Care Services, Bupa UK Insurance, Bupa Health Clinics, Oasis Dental Care and Bupa Cromwell Hospital in London.
With the acquisition, HC-One surpassed Barchester Healthcare and Four Seasons to become the largest care home company in the UK.
HC-One is currently owned by a group of investors including Atlanta-based private equity firm Formation Capital, HCP Inc., Safanad, Court Cavendish and StepStone Real Estate Partners.
Written by Mary Kate Nelson