Permira, Barclays concede defeat on McCarthy & Stone

Tom Hunter and Bank of Scotland’s £1.1bn bid for care homes builder McCarthy & Stone has been successful, with Permira and Barclays Capital opting not to increase their offer.

Permira, a European buyout firm, and Barclays Capital, the investment banking arm of the UK bank, have formally given up in their pursuit of McCarthy & Stone, a UK retirement homes builder.
McCarthy & Stone isn’t the first failed public-to-private for Permira recently. The firm has also unsuccessfully attempted to acquire HMV, a UK music and entertainment retailer, and travel and leisure group De Vere this year.
In early August, McCarthy & Stone’s board withdrew its recommendation of Permira and Barclay Capital’s 1,030 pence per share bid in favour of a 1,075 offer made a by consortium including West Coast Capital’s Tom Hunter, Bank of Scotland and property tycoons the Reuben brothers. The latter offer valued the business at £1.1 billion (€1.62 billion).
Permira and Barclays Capital said today that it will not increase its bid price or amend the terms of its proposal. McCarthy & Stone reiterated its unanimous support for the Hunter consortium bid.
The Hunter consortium has also struck a deal with Vincent Tchenguiz’s Concensus Business Group and the Tchenguiz Family Trust. The latter will be given exclusivity on the prospective sale of McCarthy & Stone ground rents in return for not making a bid to acquire a stake in the business in the next 12 months.