Psychiatric hospital operator to sell its adult services for £400m
One of the UK’s biggest psychiatric hospital operators Cambian is planning to offload its adult services arm for up to £400m.
The company – which runs some 300 hospitals and care homes across the country – has hired bankers at Rothschild to manage the sale.
Cambian has revealed it recorded a £3.5m loss for the first six months of 2016, down from a profit of £10m in the same period last year.
After announcing debt restructuring in May the company was forced in to the sale as it struggled to keep up with its loan repayments. The company’s share price has plummeted by more than half in 12 months.
Cambian reported revenue growth of 14 per cent to £160m for its first half, due to increased occupancy at its homes. Revenue in the adult services division grew by eight per cent over last year from better occupancy and fees.
Private equity firms have been seen to be interested in the growing mental healthcare services market in the UK, with BC Partners picking up 22 Priory hospitals earlier this month.