Buyer in the offing for Four Seasons but Brexit scuppers Barchester deal

Significant progress has been made in the bid to find a buyer for care home group Four Seasons Health Care but a Barchester deal appears to have hit the rocks, according to news reports.

Administrator Alvarez & Marsal (A&M) has reported that more than 45 potential buyers have shown an interest in Four Seasons with a deal expected by September, This is Money reported.

A&M said it had approached over 120 potential buyers with just under third given further access to data on Four Seasons since it took over its administration earlier this year (see BREAKING NEWS: Administrators appointed at Four Seasons’ holding companies).

A Four Seasons spokesperson said: “We are very encouraged by the levels of interest and active engagement from bidders and reiterate that nothing has changed in terms of our aim that the process achieves a whole group solution.”

While good progress was reported in efforts to find a buyer for Four Seasons, a deal to sell Barchester Healthcare has hit the rocks, according to the FT.

The FT said Australian investor Macquarie had pulled out of a £2.5bn deal to buy Barchester due to Brexit uncertainty.

Barchester and Macquarie declined to comment.

All four of the UK’s top four care home providers are reportedly seeking a buyer. Private equity firm Bridgepoint was reported to have put Care UK’s care home business up for sale in April 2018 (see Sale of Care UK care home business under way, says FT), while HC-One is also believed to be on the market (see HC-One on sale for £1bn, news report).

Analysts have warned, however, that the chances of a major deal going through are being hampered by exchange rate fears amidst Brexit uncertainty.