Abstracts » Business

Takare/Court Cavendish: limping into bed

Article Abstract:

A merger is planned between Court Cavendish and Takare which will create the biggest nursing home group in the UK with 126 homes and 11,742 beds. The industry suffers from overcapacity and constraints on local government funding, and Takare has focused on public sector patients. The industry is fragmented, and the new group will hold a 2.5% stake. The group also aims to provide services such as day surgery and meals in the home and use its brand name to penetrate the private sector. Benefits from the merger are likely to come through in 1998, and smaller nursing home concerns could become acquisition targets.

Takare PLC, Court Cavendish Group PLC

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Nursing homes hobble towards merger mania

Article Abstract:

UK nursing homes are undergoing a restructuring process. Westminster Health Care is bidding for Goldsborough, and there are other takeover candidates in the sector. UK community care legislation has affected funding for nursing homes from local authorities. Over 90% of the profits of Westminister come from nursing homes. Westminster has one private hospital and would have an additional six with the acquisition of Goldsborough. Quoted companies account for 10% of beds in nursing homes, and takeovers will therefore tend to be among privately owned companies.

Goldsborough Healthcare PLC

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Too many mishaps undermine quality credentials

Article Abstract:

Westminster Healthcare has replaced its finance director, and there is concern about this event combined with exceptional charges relating to an acquisition. The company should benefit from changes in public policy to free up hospital beds occupied by the aged, and the increase in the number of old people in the United Kingdom in the 25 years from 1998. There is still concern about the company despite these promising fundamentals, due to possible accounting problems.

Management, Nursing home management

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