NM Rothschild has sent information to a number of prospective buyers including Barchester and first round bids were due to be received last Friday. Other companies believed to be interested in acquiring the business include Bupa, which last week said it is pulling out of the Irish market, and Three Delta, an investment company backed by the Qatari government. Life Style Care posted a profit of £1.57m last year on turnover of £41m.

Earlier this year Barchester secured a £1bn loan from a syndicate of banks headed by Royal Bank of Scotland in order to refinance debt and give money back to shareholders. It had planned to sell shares but postponed the move. Barchester operates 172 nursing homes in Britain and has an annual turnover of around £350m. It is Britain's third largest nursing home operator.

Two years ago Barchester acquired Westminster Care for £525m. This year it paid £255m to buy Castlebeck, which provides rehabilitation services. Last year the company, whose chairman is former Kerry Group chief executive Denis Brosnan, said it would build its first development in Ireland on the grounds of the Adare Manor hotel in Limerick. Barchester announced last week the former head of the UK operations of restaurant chain TGI Friday's has been hired as chief executive. He began on Monday.