Mitie has announced the acquisition of home care services provider Enara Group Limited for £110.8 million.
The company has been bought from August Equity LLP and Enara’s senior management team as a boost to Mitie’s presence in outsourced health and social care sectors.
For the year ending 31 March 2013, Enara is expected to have revenue of £93m and operating profit before amortisation of £10.1m. Costs of approximately £5m are expected to be incurred within the first 12 months following the completion of the acquisition to support its integration into Mitie.
The (unaudited as of 31 August 2012) gross assets of the business are £97.3m. Mitie expects the acquisition to be earnings enhancing before integration costs in the year ending 31 March 2013 and thereafter.
The acquisition has been funded by the use of new bridge debt facilities of £150m provided by existing lenders to the group, which will be refinanced into longer term debt facilities in due course.
Mitie has created a dedicated Health Advisory Board to develop its strategic direction in healthcare. The board will comprise Dr Andy Dun, managing director of Enara, two Mitie representatives and three independent, non-executive directors who bring extensive experience of the healthcare sector.
Mitie chief executive Ruby McGregor-Smith said: “We are delighted to have made this strategic acquisition, which establishes us as a market leader in home care. Enara will provide us with a step-change in our service proposition as well as a platform to grow in the wider healthcare sector. We welcome Enara’s people to Mitie.”