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Merger talks end between major care and support providers for older people
Housing 21 and fellow older people’s housing specialist the ExtraCare Charitable Trust (ECCT) have pulled out of merger talks.
The two groups announced in March that their boards had entered into discussions to form a legal partnership.
But in a stock market update this morning, Housing 21 and ECCT said they “have agreed that the two organisations can best serve their residents by remaining as separate entities and are therefore no longer intending to merge”.
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An analysis on the creditworthiness of the combined group by Standard & Poor’s (S&P) last month found it would leave them in a weaker position.
The credit rating agency said it considered ECCT’s operating model to carry a higher risk than Housing 21’s, while the group’s debt metrics could weaken and its liquidity position may become more volatile if the merger completed.
Birmingham-based Housing 21, which provides extra-care and retirement-living accommodation, operates around 22,000 homes across 240 local authority areas.
ECCT, which is based in Coventry, manages 16 retirement villages and four housing schemes for over-55s. In total, the trust has around 4,200 homes.
The stock market update explained that the decision to end talks had been taken after “detailed discussions” and that both organisations “will each continue to develop and operate their own distinct models and services to enable older people to live better lives”.
Earlier this year, Housing 21 appointed a new interim finance boss after the permanent incumbent stepped down with immediate effect last September.
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