Controversial businessman and Labour party donor Chai Patel has signed a deal to buy half of Bupa’s care homes to create Britain’s biggest operator.
City sources said Patel’s company, HC-One, has agreed to pay up to £450 million for the 150-home portfolio.The deal will catapult HC-One from the third largest care home company in the country to the largest, potentially worth more than £1 billion.
However, the agreement could collapse if Patel – the former chief executive of upmarket healthcare provider The Priory – fails to raise enough funds.The entrepreneur has a few weeks to come up with the financing.
Patel has signed a deal to buy half of Bupa’s care homes to create Britain’s biggest operator
Bankers said HC-One may look to raise the money from US hedge fund Och-Ziff as in early July it struck a deal with the investment firm, Citibank and Deutsche Bank for a £286 million loan. Financiers at Gleacher Shacklock are advising HC-One, which looks after people with dementia.
Bupa hired Bank of America Merrill Lynch last year to find a buyer for slot gacor the care homes, many of which are deemed to be ‘low quality’, according to a financier close to the sector.
HC-One was sold in 2014 to a group of private equity firms including Formation Capital for £477 million. The transaction netted the HC-One management team, including Patel and its directors, around £30 million.
Patel, who became embroiled in the cash-for-peerages scandal in 2005, created HC-One in 2011 and it took over a third of Southern Cross’s homes after the firm collapsed.Since then HC-One has been on a major acquisition spree.
HC-One and Bupa both declined to comment.