Hands promises not to rock the boat at £825m Four Seasons
GUY Hands’ private equity house has sealed a long-awaited deal to buy Four Seasons Health Care in a deal worth £825m.
Terra Firma will take a large majority stake in the market leading care home operator, which has around 24,000 beds.
Four Seasons had been trading profitably but needed to refinance its £780m of debt before a September deadline. Yesterday’s deal is expected to close by 16 July, at which point all Four Seasons’ liabilities will be repaid in full. Terra Firma is backing its deal with a new, smaller debt package, being arranged by Goldman Sachs and Barclays.
Royal Bank of Scotland’s 40 per cent stake, which it has held since a debt-for-equity swap in 2009, will be cut to between two and four per cent, it is understood.
Hands, the chairman of Terra Firma, pictured, said the deal had “brought stability” to Four Seasons and quality of care was the “number one priority”.
Unions spoke of their concern, however, about private equity. Justin Bowden, GMB national officer, demanded meetings with government and Terra Firma.
“Residents, their families and staff will want to know how the financial numbers stack up and how the debts get refinanced for a stable future.”
Failed care home operator Southern Cross was owned by Blackstone for three years to 2007 although the buyout firm has fiercely defended its role.
Hands: we have brought “stability”