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Cambian's deal

05 December 2016 07:26

Cambian Group - one of the UK's leading specialist behavioural health service providers - has agreed to dispose of its adult services business to Cygnet Health Care Limited, a wholly owned subsidiary of Universal Health Services, Inc for £377 million in cash.

Cambian says this represents an attractive enterprise valuation of approximately 2.9x FY15 revenue of £129.5 million for the adult services business.

FY15 Adjusted EBITDA for the adult services business was £24.1 million; some costs taken into account in determining this figure will remain with Cambian after completion.

It says the sale will allow the company and its subsidiary undertakings to focus on being a market leading provider of children's services, where the board of directors of the Company sees significant opportunities for growth, development and the creation of shareholder value.

The majority of the disposal consideration will be used to repay the company's existing indebtedness in full but Cambian also intends, subject to certain conditions, to announce a return of capital of £40 million to shareholders following completion in H1.

Chairman Christopher Kemball said: "We are delighted to have attracted a high level of interest for the adult services gusiness. "The consideration from the proposed disposal will enable us to fully pay down debt and provide adequate working capital for the development and roll-out of the Children's Services Business at a time of significant and growing demand for its critical services. It also offers an opportunity to return capital to Shareholder

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