Althea Park, based in Stroud, Gloucestershire, is a specialist provider of residential care to adolescent and adult women with eating disorders or who are prone to self-harm. Its three residential homes provide 20 beds for patients on individual placement agreements with NHS Trusts and Local Authorities from across the UK.
The acquisition is in line with Care UK's strategy of investing in higher added value specialist care and therapy services, building on the Company's existing mental health presence. Althea Park is a highly regarded provider and the opportunity exists to replicate its services in other regional locations to meet the increasing demand from the NHS and Local Authorities for specialist care of this nature.
Care UK is acquiring Althea Park from Marlowe Child and Family Services Ltd, a privately owned business, for a maximum of £5.1 million of which £4.8 million will be paid on completion with £0.3 million being contingent on the result for the year ended 31 August 2004. The acquisition will be financed from Care UK's existing borrowing facilities.
Althea Park's turnover for the year ended 31 August 2003 was £2.5 million, with profit before tax of £505,000. Steve Miller, Managing Director of Althea Park, will continue to run the business on a day to day basis and will take responsibility for developing the longer term potential for the business within Care UK.
Care UK has today issued interim results for the year ended 31 March 2004.
Mike Parish, Chief Executive of Care UK commented:
"I am delighted that we have agreed the acquisition of Althea Park. It is an excellent business which increases our presence in mental health specialist services and builds on our strategy of offering higher added value specialist services for Local Authorities and the NHS."