Private equity group Terra Firma Capital Partners said Monday it will buy Four Seasons Health Care, the U.K.'s largest independent elderly healthcare provider, for 825 million pounds ($1.34 billion) to take advantage of the growing demand.
London-based Terra Firma expects to close on the purchase by July 12 with a mix of equity and debt, provided by Goldman Sachs Group Inc. (NYSE: GS) and Barclays Plc (London: BARC). Terra Firma said it would repay Four Seasons' existing debt as part of the deal.
Terra Firma is committed to further investment in the business in order to achieve long-term sustainable growth, said Guy Hands, chairman and chief investment officer of Terra Firma, in a statement.
Royal Bank of Scotland PLC (NYSE: RBS) owns around 40 percent of Four Seasons and had planned to refinance 780 million pounds before September.
The elderly and specialty health care sector is forecast to expand annually by 3.1 percent ove the next decade as the local elderly population grows, said Terra Firma.
Four Seasons operates 445 care homes with 22,264 beds and 61 specialist care centers with 1,601 beds, Terra Firma said. The company owns 60 percent of its properties, limiting rental costs.