Four Seasons: Care home operator up for sale following company slim down

Care home operator Four Seasons, which once ranked among the largest in the UK, has been put up for sale in a move expected to fetch about £300m.

The group has appointed property agent CBRE to oversee an auction in the coming months following a protracted period which saw Four Seasons reshaped and slimmed-down through a string of asset sales.

The sale will include 46 freehold care homes across England, Jersey and Scotland in what the company described as areas with “strong demand for residential and nursing care provision”.

Although significantly smaller than it was before Covid-19, the group still employs more than 4,000 people and looks after thousands of residents.

Healthcare analysts said that based on its current financial performance, the business was expected to be worth around £300m.

According to property industry sources, the business is expected to attract interest from a range of financial and industry bidders.

Last week, Four Seasons announced a strong performance to start 2024, with occupancy recovering to more than 90 per cent following a lull.

The business’s parent company, Elli Finance, fell into administration in 2019, with Alvarez & Marsal appointed to oversee the insolvency.

It had been owned by Terra Firma Capital Partners, the private equity vehicle founded by financier Guy Hands, since 2012.

Terra Firma paid £825m for the business, but Four Seasons’ £500m-plus debt pile was the subject of protracted restructuring negotiations.

In a press statement published on its website, Four Seasons said: “The 46 freehold homes are well specified with a significant proportion being purpose-built.

“The group has invested significantly in this estate over recent years, with additional budget allocated for the remainder of 2024 and into 2025. 

“This investment has included a substantial digitisation and technological investment completed throughout this year, including to home-level IT infrastructure and systems, the most recent of which is the ongoing rollout of Electronic Medication Administration Records (eMAR) which is due to completed by the end of 2024, as well as piloting of digital care records.”