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UK – Castlerock Group rescues Allied Healthcare from bankruptcy with acquisition

04 December 2018

UK-based specialist healthcare recruitment agency Castlerock Recruitment Group (CRG) announced that it has acquired home care provider Allied Healthcare.

Allied Healthcare had been on the brink of bankruptcy and was expected to cease operations by 30 November.

The home care provider was founded in 1972, operates across England, Scotland and Wales and has a subsidiary in Ireland. The company reportedly employs 8,000 people and provides care services for 13,000 elderly and disabled people.

Financial details of the transaction were not disclosed.

The rescue deal comes after Care Quality Commission (CQC) raised concerns on November 5 that Allied Healthcare, one of the biggest home care providers in England, may not be able to operate after November 30.

The CQC issued a Stage 6 notification to local authority customers in England with regard to the ongoing operation of services provided by Allied Healthcare. This notified local authorities in affected areas that it could not guarantee that Allied Healthcare would be able to operate its services beyond 30 November and that they should begin contingency planning for the safe transfer of services.

The Board of Allied Healthcare then reached an agreement with Health Care Resourcing Group (trading as CRG) to acquire Allied Healthcare’s trading assets, with ownership and full service provision transferring with effect from 4pm on 30 November 2018.

All care and support service contracts provided by Allied Healthcare, including the Primecare and Firstcall businesses, will be transferred in their entirety to CRG as part of the undisclosed deal.

With the transition of ownership complete, Allied Healthcare’s vital care workers and branch staff responsible for overseeing care visits will remain in post with the same pay and conditions as before.

CRG stated that they are confident that under Allied Healthcare’s new CEO, Narinder Singh, all stakeholders can be reassured that there will be no break in service.

Speaking exclusively to Staffing Industry Analysts, Ian Munro, Group CEO at CRG, commented, “Our priority will always be working closely together as partners with all commissioning and regulatory bodies.  We see this as being essential for us to succeed and deliver the continuity and excellent level of care our end-users require. CRG is a caring business; our history and track record demonstrate that we are secure and sustainable, and of a scale that can service these contracts and more in the future. Ultimately, by working together we will deliver excellent service for our end-users, protect our workforce and deliver for all authorities who put their trust in us.”

Munro also added that, “All carers will remain in their current roles at Allied Healthcare.”

Tristan Ramus, Chairman of Health Care Resourcing Group, said: “CRG is a health care business. We have no intention of breaking up Allied Healthcare and our aim is to ensure that no part of the country is left abandoned by this transfer of all services. We intend to bring the care provider back to full strength; however, this will require time and the full support of all stakeholders.”

Munro also commented, “The ultimate priority for CRG is to offer an unrivalled continuity of care for all Allied Healthcare service users and provide a stable and supportive environment for all carers who will continue to deliver services across all contracts. The Allied Healthcare name will not change – it’s very much business as usual.”

“What this transfer of services demonstrates is not only the scale of our business, and the ability to meet high levels of demand across a wide range of sectors, but our unwavering commitment to service users across the country, whether it’s in social care or education,” Munro said.

“Allied Healthcare is a natural and excellent fit for CRG, which has been operating successfully across the sectors it works in for over 18 years, and we would encourage carers across the UK to join us in helping deliver the same levels of exceptional care service users have become accustomed to from the HCRG Group. We want to secure the long-term sustainability of Allied Healthcare, under our management.”

In October, CRG announced that it had acquired Affinity Workforce, a provider of education, health and social care staffing. In March 2018, the group acquired London-based recruitment firm Healthcare Locums.