MITIE expands health and social care operations

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.

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.

"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."

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Share tips of the week – 3 February 2023
Investments

Share tips of the week – 3 February 2023

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
6 Feb 2023