Four Seasons announces new strategic focus

Following its acquisition by Terra Firma last year, Four Seasons Health Care has undertaken a review of its strategy. As a result it plans to restructure its organisation to focus on developing its business in three strategic areas: dementia care; private residential and nursing care and specialised services in mental health, brain injury and neurodisability.
Currently Four Seasons comprises a Care Homes Division and The Huntercombe Group, providing specialised services. The Care Homes Division is an aggregated business: about three quarters of its residents have higher dependency needs, which include dementia care; some 20% of its occupancy is accounted for by self-funded residents.

The organisation will move to three distinct focused businesses:-

•    A national network of homes offering specialist dementia care capabilities. Four Seasons, already a leader in dementia care, will step up its programme of staff training and remodelling homes to create dementia care environments alongside nursing care services. This will meet a growing demand, with the number of people requiring dementia care projected to increase by around 40% within 15 years.
•    A private care provider, with a chain of homes offering high quality elderly care together with hotel standard services and activities programmes designed for customers who see the option of a care home as a life enhancing choice.
•    The Huntercombe Group, providing care, treatment and rehabilitation services in mental health, acquired brain injury and neurodisability, that are complementary to and in partnership with the NHS.

These businesses will each have their own leadership and management team to ensure focus on their development and that they best meet the requirements of their respective customer groups. They will continue to share corporate services. Four Seasons’ owner, Terra Firma, one of Europe’s leading private equity firms, will support the strategy with investment in staff training and upgrading the existing estate as well as strategic acquisitions.

Dr. Pete Calveley, CEO of Four Seasons, who has been one of the architects of the strategy to focus on these business areas, in conjunction with Terra Firma and consultants McKinsey & Company, has announced his intention to leave the business, after seeing through this transition. This is expected to be at a mutually agreed time during 2014.

Dr. Calveley said: “I have been privileged to lead a great team that has transformed Four Seasons into the UK’s leading independent care provider. I believe that by focusing on these strategic areas it can go on to do even better things. It is right that when we have the new structures and leadership teams in place, I should let them take the business forward.”

Guy Hands, Chairman and Chief Investment Officer of Terra Firma, said: “Pete Calveley has done an outstanding job in turning around the Four Seasons business and developing its core specialty services. The strategy we have developed together will enable the business to be more responsive to its service users and stakeholders and to build on its market-leading position by delivering a best-in-class care service.”

Chairman of Four Seasons Ian Smith will continue in his role and will be actively engaged in the transition and the management of the business thereafter. Ian Smith said: “I would like to thank Pete for the great work that he has done over the past years. He has brought the company through a very challenging period and has built high quality teams throughout the business.  I look forward to supporting these teams, and to working with the new CEOs of the three business units, to take the company to the next stage of its development and achievement.”