Executive Care sold to Monarch
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Executive Care, a provider with 25 care homes across the North East and Scotland, has been sold to Monarch Alternative Capital (Europe) Ltd.
In a letter to all staff in early December, Executive care chief executive David Harrison said the company’s acquisition by Monarch meant that the group would be able to focus on long-term growth, ensuring a bright future for the company and all homes, residents and employees.
“Monarch has purchased the business as a going concern and as such, the operation of our care homes will be unaffected by the transaction,” said Mr Harrison.
“Monarch’s planned multimillion pound programme of investment into our homes, our systems and our people will enable the management team to continue with their long-term plans. These include an extensive refurbishment programme as well as additional staff training and development programmes.”
Speaking to Caring Times, Executive Care’s chairman Simon Harrison said that prior to the deal with Monarch, the groups had been owned by private shareholders with company debt spread across three banks.
“Essentially, Monarch has bought that debt from the banks,“ he said
“This is Monarch’s first venture into the long term care sector in the UK and they see the acquisition very much as a platform for growth.”
Mr Harrison acknowledged that low fees made the North East one of the most challenging parts of the country for care home operators, but said this was balanced by opportunity and pockets of affluence such as the Harrogate area.
“We have a robust plan,” he said.
“We will be looking at acquisitions and are likely to extend our geographic spread beyond our homeland in the North East. In the meantime, Monarch is investing about £6m in refurbishment of the current portfolio, along with enhanced staff training and a new IT system.”