Caledonia Investments plc has announced the sale of Choice Care Group, a UK-based provider of residential and supported living services for people with learning disabilities and mental health conditions, to iCON Infrastructure Partners, IV L.P., a fund advised by iCON Infrastructure LLP.

Choice was originally acquired by Caledonia in August 2013. Since then, the company has increased its residential capacity by some 32%, from 391 to 514 beds. Choice has invested significantly in its head office and central overhead functions, both of which have helped the business to retain market leading compliance ratings with the Care Quality Commission. 

The transaction values Choice at an enterprise value of GBP152.5 million (US$195.62 million), of which Caledonia will receive GBP99.4 million (US$127.51 million) in cash, net of fees, for the sale of its 87.4% fully diluted stake. The proceeds include pre-sale dividends of GBP7.1 million (US$9.11 million).

Overall, Choice has delivered to Caledonia a net IRR of 14.3% and a money multiple of 1.9x. The net proceeds will be used to repay, in part, amounts drawn under Caledonia's committed term facilities in connection with the company's recent acquisition of Deep Sea Electronics Ltd.