Posted on 27 September 2013
Midlands-based accountants and business advisors Smith Cooper together with Derby solicitors Flint Bishop have helped national nursing home provider MPS Care Group buy eight nursing homes in addition to refinancing their existing portfolio of homes and freeholds in a deal worth in excess of £16.5m
Owned by long-standing care home operator Paul Warren-Gray, the Group, which has care homes across the UK and Northern Ireland and over 650 staff, acquired the eight new homes from its former landlord, Quercus Healthcare.
The transaction involved a complex group reorganisation, refinance of existing National Westminster debt with Barclays Bank Plc and further facilities to enable MPS Care Group to acquire the homes.
Smith Cooper’s Business Advisory Partner David Nelson, supported by Senior Manager James Delve, led negotiations with Quercus Healthcare on the Group’s behalf together with project managing the application for the refinance with Barclays Bank Plc including discussion on financial covenants. Smith Cooper also provided specialist advice on the restructure, obtaining tax clearances from HMRC.
The transaction was project-managed by Flint Bishop’s corporate finance team, which was led by head of corporate Ran Oren and associate Martyn Brierley. Throughout the complex transaction they drafted over 300 reorganisation documents and negotiated a suite of more than 40 refinance documents. By drawing on their project management expertise, they were able to deliver the required results and minimise stress and pressure throughout the process.
The acquisitions of the eight properties were handled by Flint Bishop’s specialist commercial property team, led by partner Lewis Rose OBE.
DLA Piper advised Barclays whilst Anderson Strathern acted for Quercus.
MPS Care Group’s Chair, Paul Warren-Gray, together with Managing Director Chandler Warren-Gray and Financial Director Lloyd Young said: “We want to jointly voice our thanks for the way that the legal aspect of the transaction, led by Ran Oren, Head of Corporate Finance at Flint Bishop and Lewis Rose, in addition to their respective teams, was handled; coupled with the advice, expertise and abilities of David Nelson, Business Advisory Partner and James Delve and their colleagues at Smith Cooper who all, working closely with MPS Care Group’s staff, enabled the whole transaction to be executed in an efficient, smooth and trouble-free manner.”
Smith Cooper’s partner, David Nelson says: “This transaction represents the successful execution of an 18 month strategic plan, in which we have worked alongside Paul and the board in building both scale and financial security into the Group’s trading operations. I am delighted that the Group which excels in its Care Provision now has the security and backing of a bank which understands both the Group’s current and future vision.”
Flint Bishop’s head of corporate Ran Oren says: “I have been working with Paul and MPS for over eight years and am confident Paul and his management team have secured a bright future through this refinance and the acquisition of the property portfolio. The MPS group now owns all its trading premises and is in stronger control of its destiny.”