Bupa has announced an agreement to sell part of its UK care home business to HC-One for around £300m.
The sale, which is subject to regulatory approval, includes 122 care homes.
Bupa will retain around 150 care homes and six Richmond Villages caring for more than 9,000 residents, with a further four care homes and two retirement villages under construction.
Bupa UK chief executive David Hynam said: “This move enables us to focus our investment to continue to provide high-quality care for our residents, both now and in the future.
“This year, Bupa will invest more than £120m into refurbishing existing homes and building new care homes and retirement villages.”
Chai Patel, chairman of HC-One, has warned that many care homes are in distress due to funding shortages from the NHS. However, the company would be able to thrive because of economies of scale.
As a result of the deal HC-One is the biggest operator in the UK with 22,000 beds.
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