Barchester, the UK nursing home group controlled by Irish stud farm boss Mr John Magnier and financiers Mr JP McManus and Mr Dermot Desmond, is said to be planning to bid for Westminster Healthcare, a substantial British player in the health sector.
Reports yesterday named Barchester as one of a number of likely suitors for Westminster, which is valued at close to €600 million. Venture capitalist group 3i currently owns the company, which has 88 properties in the UK. Investment bank NM Rothschild is acting for the company.
Other potential buyers named yesterday included British private healthcare insurer BUPA, and Blackstone, the venture capital group that recently sold Savoy Hotels to the Quinlan Partnership. Market sources also speculated that Charterhouse, CVC and Cinven were also set to throw their hats into the ring.
Mr Magnier, who is master of Coolmore Stud in Co Tipperary, Mr McManus and Mr Desmond are all shareholders in Barchester. Former Kerry Group boss Mr Denis Brosnan chairs the company. Mr Magnier and Mr McManus own Cubic Expression, which has a 28 per cent stake in Manchester United plc.
Barchester provides residential care for the elderly, younger disabled people and dementia sufferers. It has 50 homes with a total of 3,160 beds. It also has a landbank with planning permission for another 247 beds.
Profit attributable to its shareholders last year was €6.6 million and it had a turnover of close to €90 million. The group made several acquisitions last year. Britain's ageing population is driving investor interest in private residential care.
None of the potential buyers would comment yesterday. - (additional reporting Reuters)
