20 June 2008

CareTech deal by Brewin Dolphin

Brewin Dolphin Investment Banking which has its national headquarters in Newcastle has completed an important strategic acquisition and £30m fund raising for its client CareTech Holdings plc (‘CareTech’), the leading provider of learning disability care services which Brewin Dolphin floated on AIM in October 2005.

CareTech has acquired care home business Valeo in a deal with up to £15.3m. Valeo is Yorkshire based and provides a range of speciality services for adults with learning difficulties including residential care and supported living schemes.

Graeme Summers, head of investment banking at Brewin Dolphin is delighted that his team has assisted CareTech in further developing their growth strategy.

“The acquisition of Valeo together with a successful fund raise is another major milestone for CareTech which has delivered significant growth since it floated.

It is CareTech’s first foray into the north and it is testament to the strength of the business that the £30m fund raise was so successful in such difficult market conditions. I am particularly pleased that we have assisted CareTech in raising equity capital at a minimal discount of only 3 per cent to its share price.”

Brewin Dolphin’s Corporate Finance team was led by directors Matt Davis and Andrew Emmott.

Since flotation in 2005 the business has grown profits (EBITDA) from £2.4 million to a forecast £17.1 million for the year to September 30th 2008 and its shares have more than doubled.