Australian investment firm Macquarie eyes £2bn Barchester swoop, report

Australian investment firm Macquarie is closing in on a deal to buy Barchester Healthcare for more than £2bn, according to news reports.

Financial title This is MONEY said the Australian group was in “advanced discussions” to buy the care home provider.

Owners, Irish businessmen Dermot Desmond, JP McManus and John Magnier, are believed to have been seeking a buyer for Barchester since July 2018, with an initial asking price quoted at around £2.5bn (see BREAKING NEWS: Owners seeking £2.5bn for Barchester, report).

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Macquarie was reported to be one of several businesses interested in Barchester in October last year (see Investor interest in Barchester heats up ahead of bid deadline).

According to the latest reports, Macquarie is now the clear favourite to purchase the care home operator, which owns over 200 homes, housing around 11,000 people.

American firm JP Morgan is believed to be managing the sale.

All of the UK’s four largest care home providers are believed to be currently seeking buyers.

Four Seasons Healthcare, which is operating under a standstill and deferral agreement with leading creditor H/2 Capital went up for sale in January (see BREAKING NEWS: Four Seasons to go on sale in January), while HC-One was reported to have gone on the market in May 2018 (see HC-One on sale for £1bn, report). Care UK, meanwhile, was reported to have begun seeking a buyer in April last year (see Sale of Care UK care home business under way, says FT).