CMBN Cambian Group

TIDMCMBN

RNS Number : 9177Y

Cambian Group PLC

05 December 2014

CAMBIAN GROUP ACQUIRES WOODLEIGH COMMUNITY CARE

Cambian Group plc ("Cambian"), one of the UK's largest specialist behavioural health service providers, announces today the acquisition of Woodleigh Community Care ("Woodleigh") for an enterprise value of GBP63m, funded from the Group's bank facilities. The acquisition of Woodleigh is a significant opportunity for Cambian and is aligned to our strategy of both increasing specialist capability and capacity, and expanding into geographies where we are under-represented.

Woodleigh operates 152 beds, across 13 residential homes and supported living units and one hospital in the Yorkshire and Humber region. The business provides a full pathway for specialist, community-based, high severity care for adults with complex needs, challenging behaviours and learning disabilities. The care and approach of Woodleigh is well aligned to the government's Transforming Care agenda and provides Cambian with a platform to replicate these services and approach in additional sites in neighbouring regions.

In the 12 months to September 2014, Woodleigh recorded revenue of GBP18.2m, EBITDA of GBP6.8m and operating profit of GBP5.4m. At 30 September 2014, the gross assets employed in Woodleigh were GBP13.5m. The properties in the Woodleigh portfolio are freehold, with three further freehold sites owned for development.

Business Update

As previously reported, Cambian has grown strongly in 2014. Given a number of high quality acquisition opportunities coming to the market in the year, such as Woodleigh, we have allocated a higher proportion of our capital to acquisitions versus organic growth. Our expectations for 2015 remain unchanged; albeit with a different revenue profile between Adult and Children's services reflecting the acquisition of Woodleigh.

The Board regularly evaluates acquisition opportunities, and believes that such transactions, as well as organic investment, will create significant value for shareholders in the future.

Saleem Asaria, Chief Executive Officer of Cambian, commented:

"We are delighted to have acquired Woodleigh and believe that the acquisition will bring great value to Cambian. It enables us to enter the Yorkshire and Humber region, and importantly brings increased specialist capability to the Group which will enable us to extend the services we offer across the business. We are committed to being the highest quality provider of specialist behavioural and health services for children and adults and today's transaction complements this vision".

Enquiries:

Cambian Group plc +44 (0) 20 8735 6150

Saleem Asaria, Chief Executive

Andrew Griffith, Chief Financial Officer

Tulchan Communications +44 (0) 20 7353 4200

Tom Buchanan

Lucy Legh

Notes to Editors

About Cambian Group plc

Cambian Group is one of the UK's largest specialist behavioural health service providers. Founded in 2004, it has grown to become a significant partner to the UK Government. The Group's services have a specific focus on children and adults who present high severity needs with challenging behaviours and complex care requirements. Cambian employs over 6,000 people across a UK-wide portfolio of 253 purpose-designed facilities, comprising 26 schools, 35 hospitals, 189 specialist homes and 3 fostering offices.

About Woodleigh Community Care

Woodleigh was established in 2004 and provides high quality services for people with learning disabilities and complex needs and behaviours, offering a range of services, including an independent hospital, residential care homes and supported living services.

The hospital: Woodside is Woodleigh's independent hospital for up to nine adults with learning disabilities and challenging behaviours, accommodating both informal patients and those detained under the Mental Health Act 1983. It provides people with a bespoke rehabilitation service within a community setting.

This information is provided by RNS

The company news service from the London Stock Exchange

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