McCarthy & Stone valued at £967m in market return

Retirement home firm McCarthy & Stone has returned to the stock market with a flotation valuing the group at £967 million.

McCarthy & Stone's IPO valued the retirement home builder at £967m

The company had been listed on the London Stock Exchange for more than 20 years until 2006 when it was taken private in a £1.1 billion deal by a consortium led by Halifax Bank of Scotland (HBOS) and Sir Tom Hunter.

It has raised £90m through today’s initial public offering (IPO) of a 35 per cent stake in the business and said the proceeds would provide flexibility for further investment in land and building work.

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Chief executive Clive Fenton said: “The level of support that our IPO has received is a strong endorsement of our differentiated business model and clearly-defined growth strategy.

“We remain on track to deliver our target of selling more than 3,000 units per annum over the medium term and our plans are underpinned by favourable demographics and the structural undersupply of specialist retirement housing.”

He added: “This is a very exciting and important moment in McCarthy & Stone’s history and I would like to thank all of my colleagues for all their hard work to date. We look forward to building on our excellent recent financial track record and delivering on our strategy to the benefit of all of our new shareholders.”

After HBOS was rescued by Lloyds in early 2009, Lloyds became the major shareholder in McCarthy & Stone before selling its stake.

The builder’s major shareholders include lender Goldman Sachs and buyout firms TPG, Strategic Value Partners, Anchorage Capital Partners and Alchemy Partners.