Care giant scrambles to save £500m sale bid

Crunch talks are underway as the £500m sale of care provider, HC-One, is put on the brink of collapse by the company’s creditors.

HC-One’s parent company, NHP – which is carrying more than £1.3 billion of debt – is expected to meet with representatives from Credit Suisse this week after the banking giant took legal action to delay the sale.

Previously owned by the now-defunct Southern Cross group, HC-One was on the verge of being sold to US-based healthcare investor, Formation Capital.

However, Credit Suisse’s legal move has cast a shadow of uncertainty over HC-One’s future. Formation Capital has reportedly told the selling shareholders that its offer will lapse shortly, although it is unclear whether it will walk away from the purchase altogether.  

With approximately 220 sites across the UK that house about 10,000 residents and employ over 14,000 staff, HC-One is the UK’s third-biggest care home operator.

In a statement issued earlier this week, NHP said: “The sale process represents the next phase of ensuring HC-One remains a stable, debt-free and fully funded organisation, committed to providing the kindest possible care.

“We are deeply disappointed that Credit Suisse has taken this action at this late stage.”

In response, Credit Suisse assured the public that the financial dispute would not affect the day-to-day operations of HC-One.