Care REIT Agrees to £448m Acquisition by CareTrust
Deal News | Mar 11, 2025 | EIN
Care REIT has consented to a £448 million cash acquisition by CareTrust REIT, a decision confirmed by the directors of the target company as fair and reasonable. Announced via a stock exchange notice on 11 March, the boards of both trusts have reached a consensus on a recommended cash acquisition of all issued and to be issued ordinary share capital of Care REIT by CareTrust's subsidiary, Bidco. The acquisition offer represents a 32.8% premium over Care REIT's closing price as of 10 March 2025. Shareholders of Care REIT will receive 108p in cash per share under the terms of this agreement. This transaction aligns with the ongoing trend of increased mergers and buybacks within the investment trust sector, which is experiencing substantial discounts.
Sectors
- Real Estate Investment Trust (REIT)
- Financial Services
Geography
- United Kingdom – The transaction is taking place in the UK, as noted by the use of GBP (£) and the mention of 'p' as pence, which is currency specific to the UK.
Industry
- Real Estate Investment Trust (REIT) – The article discusses the acquisition of Care REIT by CareTrust REIT, which are both part of the Real Estate Investment Trust (REIT) sector that focuses on managing and investing in real estate properties.
- Financial Services – The acquisition involves financial transactions typical in the financial services sector, including considerations of share capital and enterprise valuation.
Financials
- £448 million – The total cash consideration for the acquisition of Care REIT by CareTrust REIT.
- 32.8% – The premium over Care REIT's closing share price on 10 March 2025.
- 108p – The cash amount per share that Care REIT shareholders will receive.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Care REIT | Target Company | Company | Care REIT is the target company being acquired in the transaction. |
| CareTrust REIT | Bidding Company | Company | CareTrust REIT is the company acquiring Care REIT. |
| Bidco | Acquisition Vehicle | Company | Bidco is a wholly owned subsidiary of CareTrust REIT, facilitating the acquisition. |