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1 October, 2019 - 23:10 By Kate Sweeney

Cardinal Healthcare acquired by Impact REIT plc for £12.9m

Cardinal REIT

An award-winning group of care homes in Suffolk has been acquired by Impact REIT plc in a £12.9 million net deal which provides a full exit for the founding shareholders.

Cardinal Healthcare is a family-owned business consisting of two residential care homes containing 98 beds. 

Baylham Care Centre, in Great Blakenham, is a 55-bed purpose-built care home which is currently rated Outstanding by the Care Quality Commission (CQC). 

Barham Care Centre, near Claydon, has a 43-bed capacity and was rated Good during its latest CQC Inspection.

Barham Care Centre was founded in 1986 and has grown from 11 to 43 beds over the past 30 years. It was followed by the construction of Baylham Care Centre in 2011, adding a further 55 beds in a modern setting to the company’s portfolio.

Impact REIT will be leasing out the care homes to specialist health and social care provider Optima Care.

Adrian Fairburn, managing director of Cardinal Healthcare, said: “I am delighted to hand over the business to such an experienced owner and operator. 

“Impact is a leading healthcare investor in the UK and brings the financial capability to develop the homes and ensure they are able to continue to deliver much-needed care services in the area. 

“Optima Care is the ideal partner to operate the homes, with extensive experience operating care homes across the country and it is great to see the market in Suffolk being put on the map where there is an increasing demand for high quality residential and nursing homes.”

The transaction was advised by a full suite of East Anglian professional services firms, with Chris Wilson and Tony Ball of KPMG and Natalie Wade and Sam Sutton of Mills & Reeve providing financial and legal advice for the shareholders of Cardinal Heathcare; respectively. 

Aaron Stocks of Travers Smith advised Impact REIT and Michael Lingens of Charles Russell Speechlys advised Optima Care.

Chris Wilson, head of Corporate Finance for KPMG in East Anglia said: “The completion of this acquisition has delivered an excellent result for the shareholders and provided a strategic base for Impact and Optima to build a hub in East Anglia where there is a strong demand for high quality care services.

“More broadly, Cardinal Healthcare is another example of the high calibre of business being built in East Anglia, and a sign that the region’s deals market is alive and well.”

Natalie Wade, corporate partner for leading UK law firm Mills & Reeve who heads up the firm’s London and East of England health team, added: “We were delighted to act for the shareholders on their exit from Cardinal Healthcare and to transition the companies and businesses to Impact and Optima.  

“The continuation of prioritising the provision of optimum care to residents in a local business was the key driver to all stakeholders throughout the transaction.”

Pictured (left to right): Charles O’Riordan of KPMG, Adrian Fairburn from Cardinal Healthcare and Natalie Wade of Mills & Reeve

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