MITIE Group, which labels itself as a 'strategic outsourcing company', has acquired Enara group, the fourth-largest provider of home care services in the UK.
Enara, which was acquired from August Equity and Enara's senior management team for a total consideration of £110.8m on cash and debt-free basis, is expected to give MITIE a "scalable platform to compete in the growing outsourced health and social care sector".
The acquired business delivers a wide range of home care to people who require help and support due to illness, disability or infirmity. It works via local authority, NHS and private pay agreements.
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"The community care market is a significant strategic opportunity for MITIE and an ideal entry point into the health and social care sector," MITIE said on Tuesday.
"The demographic and economic drivers of an ageing population, together with on-going cost pressure is encouraging a shift both from hospitals and residential care homes towards greater care in the community. The provision of this care is increasingly being outsourced by local councils and health authorities to the private sector, generating significant opportunities for growth."
In the current financial year (to end March 31st 2013), Enara is expected to generate £93m of revenue and £10.1m of operating profit before amortisation.
Due to its integration into MITIE, the company will incur around £5m of costs following the acquisition, MITIE said.
MITIE's 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."
