Hadrian Healthcare is toasting a record breaking deal in which five of the firm’s luxury care homes have been sold to a national operator for more than £100m.
The transaction – which was completed this morning following more than 12 months of talks – marks a new record within the care industry, with the highest rate ever paid per bed. It is also the fourth buyout the firm’s founder Ian Watson has completed in the last 16 years, with the deals’ value totalling more than £230m.
Chairman and founder Mr Watson has spent the last four years growing the firm’s luxury Manor House branded homes, having sold the Gateshead group’s Lifestyle branded division in 2015 to Bupa.
The homes, across the North East and Yorkshire, combine exceptional health care for older people with all the best elements hotel guests can enjoy, including luxurious touches such as bistro cafes, cinemas, ballrooms, bars, in-house chefs, private en-suite rooms and gardens.
The five homes – in Wetherby, Knaresborough, Oulton, Barnard Castle and Harrogate – have been bought by Aviva Insurance in the deal, which is significantly higher than £100m. Aviva is now bringing in non-profit organisation Anchor care to run them, with more than 300 employees transferring to the new owners.
As in all other deals, Mr Watson retains the Hadrian Healthcare name and two homes, in Gosforth’s Brunton Park and Whickham in Gateshead, and 150 employees are also retained.
Mr Watson – who made national headlines when he paid for Take That to play in a marquee at his home for his wife’s birthday – said: “For more than 10 years with the Manor House brand we’ve been constructing in affluent areas, offering care for the more discerning elderly client.
“And in Harrogate we’ve smashed through the glass ceiling. When you walk in, it’s like entering The Ivy in Chelsea. It was named the best luxury care home in the Ƶ and has full a la carte restaurant, a chauffeur, hydrotherapy pool – standards I would call hotel services together with a high standard of care.
“I was approached by someone wanting to buy the whole business for an eyewatering amount but to everyone’s surprise I turned it down - I’m not ready to retire.
“We carried on talking and we have agreed I retain the two homes and my North Yorkshire group of homes will be sold. At the end of the day I couldn’t ignore the incredible offer which is breaking all records in terms of the amount being paid per bed.
“Anchor is a not-for-profit organisation which has a very strong team which is more focussed on care than profit.”
Mr Watson praised the team of behind-the-scenes dealmakers who have worked for a year to get the deal over the line.
He said: “I particularly want to thank Hugh Welch at Muckle LLP who has worked tirelessly and been extremely committed to getting the deal over the line.
“The deal has been brought together by the successful management of Julian Evans, the MD of Knight Frank’s healthcare division, and our accountants Saffrey Champness have been also significant players in putting together the financial structure of the transaction.
“I leave part of the business with a heavy heart, and I’m going round to see everyone and that’s going to be difficult because we have an exceptional team, but on the broad side a lot of key people are remaining with me and part of me is still quite excited to start innovating again and looking at how we can take lots of aspects of retirement living and elderly care to another level.”
Hugh Welch, senior partner at Muckle LLP said: “It’s been a privilege and a pleasure for us to work for Hadrian Healthcare over a number of years. The size and success of this latest transaction is a testament to the extraordinarily high standard of care provided in all their homes and the team at Muckle are delighted to have been advising on this deal.”
Mark Greaves, Anchor Hanover’s managing director, care services, said: “Both Anchor Hanover and Hadrian Healthcare are organisations which are committed to high-quality, person-centred care – and we look forward to these homes becoming a key part of our care home offering. The addition of these five homes will broaden our provision of quality care in the North of England.”
Julian Evans, partner and head of healthcare, Knight Frank added: “Hadrian Healthcare are widely regarded as one of the Ƶ’s premier luxury care home providers. Their stunning facilities, operated by outstanding teams, makes for a tremendous opportunity for Anchor.
“Anchor are a leading housing association have acquired five Hadrian Healthcare homes, including the award winning Wetherby Manor, which will all complement their impressive range of services.”
