Saga expands with acquisition of Nestor Healthcare Group

In a bid to expand its business in the UK, Saga has acquired Nestor Healthcare Group for an estimated 124 million pounds. Saga reiterated it expects the move to enable it establish a nationwide care network. Nestor provides a range of managed social and primary care services including domiciliary care.

The acquisition is expected to enable Saga develop its care base giving it nationwide coverage. Nestor has a care network the north of England while Saga is currently focused on the South. Other than care services Saga provides financial services and long term care advice.

In the fiscal year ending 31st December 2009, Nestor reported revenues of 152 million pounds, and a profit before tax of 7.3 million pounds. The acquisition, at 110 pence per share, represents a premium to shareholders of 4 per cent to the closing price of 105.75 pence per share on 3 December, the last business day before the announcement.

Saga Executive chairman, Andrew Goodsell, said this deal represents a great opportunity for Saga to accelerate its growth strategy for home healthcare services. He reiterated his believe that there is real potential to develop a major national branded healthcare business for Saga’s customers and Nestor's work in recent years will help the firm achieve this.

Nestor's chairman, John Rennocks, said, he was pleased that we can now achieve realization of sensible value for Nestor’s shareholders by combining its businesses with two very highly regarded branded businesses. The acquisition is subject to shareholder approval.

Nestor is a large independent UK healthcare organization dedicated to providing managed services to health and social care customers in the UK. Nestor focuses on delivering person-centred solutions, providing short-term or long-term health and social care as a partner of the community.

The Group was established in 1949 and employs a nationwide workforce, managed and deployed from a network of local branches. For the financial year ended 31 December 2009, Nestor reported revenue of £152.0 million, adjusted operating profit of £9.7 million and a profit before taxation of £7.3 million.

Its announcement reiterated that the boards of Saga Group Limited ("Saga"), a subsidiary of Acromas Holdings Limited (“Acromas”), and Nestor Healthcare Group plc ("Nestor"), reached an agreement on the terms of a recommended cash acquisition by Saga of the entire issued and to be issued ordinary share capital of Nestor.

7 Dec 2010.