Cambian offloads adult services in £377m deal with Cygnet
Mental healthcare operator Cambian is to offload its adult services business for £377 million to help pay down its debt.
The deal, which will see the division snapped up by rival Cygnet, will see Cambian's shareholders snaffle £40 million with the remainder going towards paying off its £293 million debt pile.
It will leave a slimmed down Cambian with a focus on children's services.
Boss Saleem Asaria said: "We recently took the strategic decision to develop our Children's Services Business around a differentiated integrated recovery model incorporating care, education and therapy for children with the highest needs.
"The proposed disposal will enable us to focus fully on the development of the business and realise its potential as one of the UK's leading specialist providers."
Cambian believes there is significant opportunity for organic growth and bolt-on acquisitions in its children's arm.
The group added that current trading is in line with expectations. Shares were up 7.37% to 140.3p in morning trading.