Member Article

North East dementia care provider completes sale and acquisition with Santander funding

Home care provider Cramlington House Limited has acquired a Longbenton care centre, following funding from Santander UK Plc.

Part of the Craig Healthcare group of companies operated by Lucy Craig, the Northumberland firm’s purchase of West Farm Care Centre Ltd comes as it simultaneously announces the sale of Kingsbury House care home in Tynemouth.

The firm, which opened in 2013 and employs around 75 full-time staff, says the deals present the best opportunity to grow throughout the region moving forward.

Santander UK Plc provided loans totalling £5.75m to fund the restructure whilst Newcastle’s Muckle LLP advised Cramlington House on its refinancing.

Corporate solicitor, Matthew Walsh, of Newcastle-based commercial law firm, Muckle LLP, advised on the acquisition and sale of the businesses, while the refinancing work was led by partner, Louise Duffy.

Matthew said: “All three elements, the acquisition, the refinancing and the property sale, needed to come together and complete at the same time. Everything accelerated once the property sale was agreed and the projects required considerable co-ordination and driving forward to complete before Christmas.

“To make sure we delivered the acquisition in time we invited the parties into our offices to speed up negotiations. The value of getting people negotiating face to face, rather than doing it by email and telephone, cannot be underestimated.

“All of the parties and their lawyers were based in the North-East which helped. We’re really pleased to support Lucy Craig in the expansion of her business.”

Lucy said: “The success of our care homes has given us the confidence to expand our portfolio, having built a good reputation over the years for providing high quality care for elderly people.

“The addition of West Farm Care Centre Ltd creates opportunities for continued growth.”