Harrison Drury teams advise on major care sector transaction
Harrison Drury has advised a Greater Manchester company that provides care services to vulnerable young people on its purchase of a children’s residential care provider.
CFS Care was established in 2016 and is based in Atherton, Greater Manchester. The Ofsted-regulated company provides fostering, supported accommodation and residential care services for local authorities across the North West and employs around 55 staff.
The company has purchased Next Stage 4 Life, a residential young person’s care operator based in nearby Bolton, which manages eight homes on behalf of local authorities across Bolton, Bury, Wigan and Chorley. The business employs around 65 staff.
The acquisition will allow CFS Care to expand its young people’s care operations, complementing its existing fostering, supported accommodation and residential young people’s care provisions.
Kim York, chief executive at CFS, said: “Our business is built on the principle of putting the young people in our care, as well as our carers, at the heart of everything we do, and this was the key reason behind the acquisition.
“Expanding our residential care service means we can offer the support which best suits the particular needs of young people brought into our care and gives them a safe and nurturing home environment – whatever that may be.
“Next Stage 4 Life has a strong reputation in the Greater Manchester and Lancashire area with an excellent and experienced team. I’ve thoroughly enjoyed welcoming them to the CFS Care family.”
Harrison Drury provided corporate, property and employment law advice to CFS Care on the transaction. Hayley Goodwin and Wendy Catterall from our corporate team, Jennifer Potts from our commercial property team, and Emma Butterworth from our employment team, were all involved in advising CFS.
Hayley Goodwin, partner in our corporate team, commented: “CFS Care and Next Stage 4 Life both provide vital support for young people and we’re incredibly proud to have worked with CFS and the wider advisory team to make this transaction possible.
“It means CFS can further grow and widen the range of care support it provides to clients and service users, enabling more vulnerable young people across to build a brighter future and making our society stronger.”
Harrison Drury worked alongside national accountancy and business advisory firm MHA on the transaction.
MHA’s team was led by corporate finance director Rob Holgate, supported by Oliver Toseland. Banking and finance director Carl Hall provided debt advisory services. Transaction services partner Rob Dawes, supported by Stefan Denieffe provided financial due diligence while tax advisory partner David Hackett, supported by Steve Haywood and Jack Swindlehurst provided tax due diligence.
The transaction was funded through a debt facility provided by Shawbrook Bank’s specialist Healthcare team.