JP McManus Dermot Desmond and John Magnier Secure Major Share in £4 Billion Nursing Homes Deal
Irish billionaires JP McManus, Dermot Desmond, and John Magnier are poised to secure a substantial stake in a major transaction regarded as a £4 billion acquisition of the Barchester Healthcare nursing homes network in the UK. This strategic move comes after three decades of investment in the company.
Overview of the Proposed Acquisition
The New York-listed healthcare real estate investor, Welltower, is in advanced negotiations to purchase Barchester Healthcare along with its associated entity, Limecay Limited. These firms collectively manage a significant portfolio of nursing homes. An official announcement regarding this acquisition could be made as early as Monday, coinciding with Welltower’s scheduled quarterly reporting.
Barchester Healthcare: A Leading Operator
Barchester Healthcare is the second-largest provider of nursing homes in the UK, operating over 260 care facilities and six hospitals. As of the end of the last fiscal year, the company had employed approximately 17,200 staff members.
Financial Snapshot
- Barchester’s revenues increased by 11% to £966.8 million.
- The operating profit rose by about 25% to £94 million.
- Limecay recorded turnover of £125.5 million, with an operating profit of €125 million.
Background and Sale History
The journey of Barchester’s ownership has been noteworthy. The company was founded by British entrepreneur Mike Parsons in 1993, with McManus, Desmond, and Magnier investing in 1994. Since then, they have emerged as the primary shareholders. Derrick Smith, co-owner of the Coolmore Stud, also holds shares in Barchester.
In 2017, there was a near-sale of Barchester to Macquarie for £2.5 billion, but the deal fell through due to uncertainties related to Brexit.
Debt and Asset Overview
Barchester operates with minimal debt, with external loans totaling £366.4 million and a related party owing of £103.6 million as per the recent financial filings. Limecay, on the other hand, has £1.09 billion in loan notes issued to its parent company in the British Virgin Islands, due by 2027.
Implications and Future Prospects
As this significant transaction unfolds, McManus, Desmond, and Magnier stand to enhance their influence in the UK healthcare sector. This sale is particularly timely for Magnier, who recently faced a setback in purchasing the Barne Estate in Co Tipperary.
The outcome of this potential acquisition could reshape the landscape of nursing home operations in the UK, with Barchester positioned to expand further under Welltower’s management.
