'An extraordinary journey': Belfast law firm advises on £615m sale of 55 care homes
Browne Jacobson's team acted as sole legal advicer to the seller of Runwood Homes, which operates 12 care facilities across Northern Ireland, in the multi-million-pound deal with US investors
A Belfast-based legal team has advised on the £615m sale of one of the UK's largest care home groups, in a major transaction involving a portfolio of 55 homes and almost 4,000 registered beds.
UK and Ireland law firm Browne Jacobson acted as sole legal adviser to the seller of Runwood Homes, which has been acquired by US healthcare operator and investor Omega Healthcare Investors and Foundation Partners.
The deal, which only involved homes in England, will see the Essex-founded business, established by Gordon Sanders 40 years ago, enter its next phase under new ownership.
Runwood Homes operates 55 care homes across England, with 3,930 registered beds. It also has a significant presence in Northern Ireland, where it operates 12 properties, including Madelayne Court in Portstewart, Carrickfergus Manor and Magherafelt Manor.
Omega Healthcare Investors, a US real estate investment trust with a global portfolio of around 1,100 care homes, acquired the business alongside Foundation Partners, an investor in operational real estate and asset-backed businesses.
Runwood Homes will now be managed by Evera Living, Foundation Partners' care platform.
The Browne Jacobson transaction team was led by Ross Davidson, partner in the firm's Belfast office, who has advised Runwood for 15 years and also worked on the disposal of its Northern Ireland portfolio last year.
He was joined by Vicky Tomlinson, partner and head of Independent Health and Care; Richard Cox, partner and head of Corporate; and Victoria Thourgood, partner and head of Health Real Estate, alongside specialists from across the firm's corporate and property teams.
Ross said: “Runwood Homes is an outstanding business, built over four decades through a clear commitment to high-quality care and the dedication of its people. Its scale, reputation and strength are testament to the vision of Gordon Sanders and the team who have developed the business into one of the UK’s leading care home groups.
“I have hugely enjoyed working with Gordon and the wider Runwood management team over the last 15 years, culminating in the completion of this disposal.”
Vicky continued: “It has been a privilege for our team to support Gordon Sanders and the wider team on such an important transaction for the independent health and care sector. This demonstrates the continued appetite from international investors for high-quality UK care businesses and the opportunities that exist for those willing to take a long-term view of the market.
“Our work on this deal reflects the breadth of complex legal support we can provide, bringing together our corporate, independent health and care, and real estate teams from across our office network to deliver a successful completion of this significant transaction.”
Commenting on the transaction, Gordon Sanders, CEO and founder of Runwood Homes Senior Living, added: “Developing Runwood Homes has been an extraordinary journey and one of which I am immensely proud. From the outset, I have always believed in putting quality first and, above all, that our people are at the heart of our business.
“I am incredibly proud of everything Runwood Homes and our dedicated team have achieved over the years. Today, the company is operating from a position of strength, both financially and from a regulatory perspective, which is a testament to the commitment and hard work of everyone across the organisation. As Runwood Homes enters its next chapter, I would like to extend my very best wishes to Omega and Foundation and wish them every success for the future.”
Browne Jacobson's independent health and care team comprises more than 200 specialist lawyers advising providers on mergers and acquisitions, finance, regulation, employment, property and other legal matters.
The firm has also recently advised on a number of other significant transactions in the care sector, including the sale of CF Group to Keys Group and the disposal of part of the Medina Group to dementia and complex care provider Fortava Healthcare.
HNH Partners acted as financial and tax advisers to the Runwood Homes shareholder.