CARETECH Holdings PLC, a major a provider of social care services in the UK confirmed last Friday (8) that Competition and Markets Authority (CMA) had unconditionally cleared the company's acquisition of Cambian.
The transaction was completed on October 19 last year.
“The CMA has cleared the completed acquisition by CareTech Holdings plc of Cambian Group plc,” said CMA in a release.
Cambian Group was taken over by CareTech for £372 million last year is one of the biggest providers of specialist behavioural health services for children in the UK. Its children's services include specialist education, residential care, foster care, and mental health services.
Cambian shareholders now own around 36 per cent of the enlarged company.
CareTech expects to save £5m in 2020 and £6m in 2021. It is also projects that it will cost £7.6m to achieve these synergies over that period.
Farouq Sheikh, executive chairman of CareTech said: “We are delighted by the CMA's decision and would like to place on record our appreciation to all involved during the CMA process particularly the executive teams at CareTech and Cambian.
“We will now move forward with the integration, creating value for all our stakeholders through the highest quality service offerings and significant synergies,” Sheikh added.
Founded in 1993, CareTech was listed on the London’s Stock Exchange AIM market in 2005, and revenues have grown from £18.2m in 2004 to £166m last year.
In an interview with the Asian Rich List (published by Eastern Eye) last year, Sheikh noted: “CareTech has continued to expand and evolve throughout its 24-year history. It supports approximately 2,000 adults and children with what it describes as a wide range of “complex needs” within nearly 250 services, including supported living pathways and foster care to individuals who need it.”
The business employs over 5,000 staff.
At the firm’s biggest division, Adult Learning Disabilities, sales rose from £87.7m to £101m.
As part of its social service initiatives, CareTech foundation last year announced that it would provide grants to charities Barnado’s and the British Asian Trust, each delivering £1m in partnerships.
Bobby Bawa