Mears, the social housing and care provider, has finally snapped up smaller rival Supporta for £27.2m in an all-share deal.
The move - which has been mooted for a number of years - sees Mears paying 0.115 of its shares for each Supporta one. With Mears up 4.75p to 274.25p, that values each Supporta share at around 31.5p. Supporta, whose shareholders will end up with around 12% of the enlarged company, is up 3.5p to 28p. Mears chairman Bob Holt said the deal was transformational for the company's care business:
Supporta provides quality public sector services and the amalgamation of the two care brands and their subsequent rebranding as Mears will provide the care sector with a market leader with customer service at the very top of its agenda.
Panmure Gordon welcomed the move, saying:
The deal will increase Mears's presence in the Domiciliary Care market, potentially doubling its Domiciliary care revenues and enhancing margins. It looks to be a sensible course of action; we retain our positive stance and buy recommendation.
