by David Jones

Saga Group, the Kent-based holidays to insurance company, looks set to add another 9,000 employees to its payroll if a £107 million takeover deal goes through.

Saga, which has its head office in Folkestone, says it is optimistic its acquisition of Allied Healthcare International Inc will be completed by the end of the year.

Allied Healthcare is a leading provider of domiciliary health care in the UK and Ireland but is registered in New York.

The purchase price of Allied's shares by Saga totals $175m (£107.2m).

Allied operates a community-based network of about 110 branches in the UK with the capacity to provide carers and specialised medical staff to around 90 per cent of the population.

Paul Green, Saga's head of communications, said today: "The proposed takeover would give Saga a six per cent market share of the domiciliary care business in the UK, making us the biggest individual provider.

"The home care business has been expanding rapidly in the UK, and we view this acquisition as an extremely important third leg of our business, alongside our iconic holiday brand and financial services.

"It means that 77 per cent of the UK will now be within a 20-minute drive of one of our branches."

Saga trialled its entry into the domiciliary care sector three years ago through its Saga Independent Living business here in Kent.

John Ivers, chief executive of Saga Healthcare, said: "Our strategic intent has been to grow our healthcare division organically and through carefully selected acquisitions.

"I am therefore delighted that Allied is joining Saga Group. We are creating a nationally-recognised and trusted provider of quality care in the home."

The takeover, which is subject to approval by Allied's shareholders, would increase the number of Saga Group employees to 18,000.