Terra Firma buys Four Seasons for £825m

Debt to finance the acquisition will be arranged by Goldman Sachs and Barclays. The transaction is expected to complete before 16 July 2012, at which point Four Seasons' existing debt liabilities will be discharged in full.

RBS was reportedly the largest shareholder in the business prior to the sale, holding a 40% equity stake, which it secured in a debt-to-equity swap in 2009. The bank reinvested in the business alongside Terra Firma.

Both the GP and Four Seasons stated that the company would see its debt burden significantly reduced following the buyout, and that current lenders will be repaid in full.

Company
Four Seasons is an independent provider of health and social care in the UK. It operates 445 care homes as well as 61 hospitals and specialist units across the UK, the Isle of Man and Jersey. It employs more than 30,000 staff and looks after 20,000 residents.

The group is trading profitably and posted an EBITDA of around £100m in 2011. Four Seasons maintains a balance of freehold and leasehold properties, owning  around 60% of the facilities it operates.

People
Guy Hands led the deal for Terra Firma. Geoff Westmore is chairman of Four Seasons.

Advisers
Equity – Goldman Sachs (M&A); Barclays (M&A); Slaughter and May (Legal).
Company – Rothschild (M&A); Gleacher Shacklock (M&A); Deutsche Bank (M&A); Macfarlanes (Legal).

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