PE-backed Saga Pays $195M for Nestor Healthcare

Saga Group, which is owned by private equity firm Acromas Holdings, will acquire Nestor Healthcare for roughly 124 million pounds ($195.6 million), Reuters reported. The deal, at 110 pence per share, represents a 4% premium over Nestor’s closing price Friday. U.K.-based Nestor provides health and social care services. Saga sells insurance, financial services and vacation packages to people aged 50 and older, Reuters said.

(Reuters) – Saga Group, which runs popular pensioner holidays in the UK, said it would buy Nestor Healthcare (NSR.L) for about 124 million pounds ($195.6 million), days after Saga’s owner, private equity group Acromas Holdings, sweetened its offer for a second time in as many months.

Nestor shareholders will receive 110 pence in cash for each share, a premium of about 4 percent to the stock’s Friday close, the companies said.

Under the terms, Nestor will pay a second interim dividend of 2.5 pence per share for the year ending Dec. 31 in lieu of a final dividend.

Nestor provides services to health and social care customers in the UK, while Saga provides insurance, financial services and holidays to people aged 50 and above.

Saga had first made an offer for Nestor in August and sweetened its bid in October and November.

On Monday, Saga said it had the support of over half of Nestor’s shareholders, including the company’s directors.

Nestor shares, which have gained over 30 percent since the company rejected Saga’s original 90 pence per share offer in August, were up 3.8 percent at 109.75 pence at 0831 GMT on Monday on the London Stock Exchange.

($1=.6340 POUND) (Reporting by Adveith Nair in Bangalore; Editing by Anne Pallivathuckal)