BIRMINGHAM-based Clearwater Corporate Finance has advised UK private equity buy and build specialist Sovereign Capital on its backing of the management buyout of independent supported living provider Eden Supported Housing Ltd.
Midlands-based corporate law firm Browne Jacobson acted for the new management team.
Based in Newark, Eden operates from six offices across Nottinghamshire and South Yorkshire and its 560 staff provide long-term care and support for more than 250 adults with a learning disability living in the community.
Eden, established in 1994, provides approximately 1,000 hours of domiciliary care per week. The business’s innovative, Eden Enhanced service offers tailored support and care packages for people with a learning disability and additional complex needs/challenging behaviours and/or mental health support needs.
Sovereign has been actively investing in the healthcare services sector since 2002, specialising in acute care provision. Its current portfolio includes Cascade Care, which provides residential care for adults with mental health needs, and Select Living Options, which supplies supported living for adults with learning disabilities and mental health needs.
Sovereign is currently in discussions with a number of Supported Living businesses across the UK to expand Eden’s geographic reach through acquisition.
Andy Moore, Clearwater’s head of healthcare, said: “Domiciliary care and supported living is a rapidly growing market within the healthcare sector, with service users increasingly being encouraged by NHS Trusts to live independently rather than remaining in costly mainstream residential care.
“Eden’s position as a regional market leader with excellent customer relationships in Nottinghamshire and South Yorkshire gives it a strong foundation to grow into new markets. Furthermore, Sovereign’s excellent track record in the sector should only act to accelerate Eden’s expansion.”
The transaction represents Clearwater’s second deal in the healthcare sector in 2010, after the firm advised UK support services group DCC on the £31m sale of its mobility and rehabilitation business to Patterson Medical Limited, the Nottingham-based subsidiary of US business Patterson Companies Inc.
“The long term dynamics in the healthcare sector are driving M&A activity. We have a number of other transactions in the pipeline and expect to see several more transactions completing in the next 12 months,” added Mr Moore.
Oliver Pritchard, corporate partner at Browne Jacobson added: “The healthcare sector, particularly domiciliary care and supported living, has been an active area for private equity houses for the last 12 months. We are delighted to have acted for a first class management team that unquestionably has the expertise, drive and passion to ensure the business achieves its ambitious growth plans.”
If you’re not getting our daily emails, your competitors might be. Click here to check your account settings.
Click here to sign up to receive our new South West business news...
