JP McManus, Dermot Desmond, John Magnier Secure £4bn Nursing Homes Deal
Irish billionaires JP McManus, Dermot Desmond, and John Magnier are positioned to secure a significant stake in a £4 billion deal involving Barchester Healthcare, a key player in the UK nursing home sector.
The Barchester Healthcare Acquisition
Barchester Healthcare is the second-largest nursing home operator in the UK, boasting over 260 care homes and six hospitals. A related entity, Limecay Limited, is also part of this acquisition process. New York-based healthcare property investment group Welltower is currently in advanced discussions to acquire Barchester and its associated company.
Financial Context
- Barchester’s revenues increased by 11% to £966.8 million.
- The company’s operating profit surged by 25% to £94 million.
- Limecay recorded a turnover of £125.5 million and an operating profit of approximately €125 million.
As of the end of last year, Barchester employed 17,200 staff. Its latest financial filings reveal that Barchester had £103.6 million owed to related parties and £366.4 million in external loans. In contrast, Limecay holds £1.09 billion in loan notes, due for repayment by the end of 2027.
History of Investment
The three billionaires have invested in Barchester since 1994, shortly after its inception by entrepreneur Mike Parsons. They are recognized as the largest shareholders of the company. Their collective investment has positioned them significantly within the healthcare property sector.
Market Moves and Previous Offers
Welltower’s impending announcement regarding the acquisition may coincide with its quarterly results release. Six years prior, Barchester was close to a sale to Macquarie for £2.5 billion. However, that deal fell through due to uncertainties surrounding Brexit.
Recently, JP Morgan was engaged to aid in the renewed sales process for Barchester. Meanwhile, John Magnier faced a setback in a separate real estate venture involving the Barne Estate in County Tipperary. The estate was listed for sale in July 2023, but a court ruling invalidated his claimed agreement for a €15 million purchase.
Overall, the potential acquisition of Barchester Healthcare highlights the growing interest in the nursing home sector by major investors and underlines the historical significance of the Irish tycoons’ involvement in healthcare real estate.
