Healthcare specialist up for sale

3:49pm Tuesday 18th September 2007

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THE BOSS of healthcare giant Verna Group has moved to reassure nearly 400 staff at its Bolton headquarters that the future is bright after the company was put up for sale.

The Folds Road firm, which has been put on the market by private equity owner Legal and General Ventures (LGV) has also confirmed that it will shed 50 jobs as part of an operations review.

But it says it has already had 40 volunteers for either redundancy or early retirement, and Karen Haslam, chief executive of the infection-control specialist, insisted it was in "good shape".

LGV, which bought the firm for £60 million less than three years ago, is expected to sell to a rival venture capital outfit.

LDC, Gresham, Phoenix and Bank of Scotland's integrated finance arm are thought to be interested with a sale price of between £50 million to £100 million mooted.

Trade buyers are also believed to be hovering with an offer for the firm, which this summer set up a base in South African capital Johannesburg.

Since LGV bought Verna it has sold off several arms of the business including Vernagene, which specialised in water treatment and food processing.

The focus has been on Vernacare, which makes bedpans, washbowls and other healthcare items, and Care Shop, which specialises in mobility and healthcare products for nursing homes.

The 50 jobs in Bolton are being cut as the inspection and packing of mouldings used to make bedpans is gradually mechanised.

Twelve of the 40 volunteers have left the company since the review of operations, which aims to improve productivity and efficiency, was announced in March.

The company, which employs 380 staff in Bolton and another 1,200 across the UK, says it is hoping to avoid compulsory redundancies.

And Ms Haslam said the outlook for the firm, which is a top 30 supplier to the NHS and exports to 43 countries, was good.

"The group's success has been noticed by the business community and interest in acquiring the group has reached the point where we have an obligation to explore all available options," she said.

"There is nothing really to say at this time, except to re-assure our employees that the best interests of the business, and taking Verna Group forward, are at the forefront of any discussions.

"My number one focus is to ensure its continued success through investment into the business and its people.

"The group is in good shape, with a focussed management team and a strong platform for the future."