MBH Corporation plc completes Samuel Hobson House acquisition and establishes new Health industry vertical
London, 10th January 2020 - MBH Corporation plc ("MBH"), a diversified investment holding company, has completed the acquisition of Samuel Hobson House and established a new vertical "Health". Samuel Hobson House and its associated property assets will be purchased using MBH stock in an EPS accretive manner.
Samuel Hobson House ("Samual Hobson") is a care home, based in Newcastle-under-Lyme, UK, built in 2009. The home specialises in dementia care for those aged over 65 years with a current occupancy rate of 100%.
MBH believes the aged care sector will continue to grow as the world population ages and a shortage of care providers for the ageing population. According to current research from Grant Thornton, the population in the United Kingdom of those aged greater than 85 years old is projected to increase from 1.6 million in 2016 to 2.8 million by 2031, an increase of circa 75%. This ageing population will require access to care services, including residential care. To further compound the issue, elderly care bed capacity has stagnated.[1]
The acquisition of Samuel Hobson includes the property valued at GBP1.8 million. The care home is expected to generate an annual EBIT of approximately GBP145,000.
The total consideration for the acquisition is GBP1.95 million which is settled, as follows:
- a loan note of GBP1.8 million (non interest bearing and not payable for 3 years); and
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GBP150,000 to be 100% settled by way of issuance of MBH shares. The price is set at EUR1.47 per share.
Callum Laing, CEO of MBH, commented: "I am very pleased to be opening our fourth industry vertical, 'Health'. Not only does this acquisition showcase the diversity in industry that our agglomeration model appeals to, we believe it will be the first of many health related business joining us over the next few years."
Vicky Smith, Principal Care Manager of Samuel Hobson House commented: "Samuel Hobson House is really pleased to be a part of MBH. As a business, we believe this is a fantastic move for us and being part of the agglomeration model will bring benefits to our organisation and the group."
MBH expects that the total number of shares on issue after completion of this acquisition will be between the range of 61 million and 66 million shares. This is subject to the finalisation of the audits for KS Training Ltd, UK Sports Training Ltd, Asia Pacific Energy Ventures Pte Ltd and Guildprime Specialist Contracts Ltd.
[1]https://www.grantthornton.co.uk/globalassets/1.-member-firms/united-kingdom/pdf/documents/care-homes-for-the-elderly-where-are-we-now.pdf
About MBH
MBH Corporation plc is a diversified investment holding company, listed on the Frankfurt and Dusseldorf Stock Exchanges. The company acquires small to medium enterprises across multiple geographies and sectors that are well established, profitable and looking to scale. By leveraging the Agglomeration strategy, MBH Corporation plc is able to create substantial shareholder value through the consistent and accretive acquisition of excellent companies.
www.mbhcorporation.com
Contacts for IR and media enquiries:
MBH Corporation plc, Charlotte Williams, charlotte@unity-group.com, +44 (0)770 396 3953
Kirchhoff Consult AG, Nicole Schüttforth, nicole.schuettforth@kirchhoff.de, +49 (0)40 609186 64
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