Acquisition sees BGF exit investment in healthcare group

Sutton Coldfield-based CHS Healthcare, a provider of outsourced services for the NHS and social care, has been acquired by London headquartered Acacium Group.

The deal marks an exit for BGF, which invested £10m of growth capital into CHS in 2018, helping the business expand its infrastructure and operations, supporting the provision of services to the NHS and local authorities nationwide.

The investment also enabled CHS to bolster its senior management team and pursue an acquisitive growth strategy.

CHS was established by GP-turned-healthcare entrepreneur Dr Richard Newland in 1995.

While working as a GP, he recognised that families needed more support and expert advice when choosing a care home. The company was developed to provide free, expert advice to families and the value of this work was quickly recognised, building partnerships with hospitals and care homes initially in the Midlands and then across the country.

Today, CHS’ offering is focused on improving patient flow, healthcare assessment support and data management.

It employs more than 250 people nationwide, contracting with more than 150 NHS hospitals and clinical commissioning groups across the UK.

During BGF’s three-year investment period, CHS’ revenues grew by 75% to over £20m.

The deal marks BGF’s fourth successful exit this year, following the exits of investee companies Renal Services, Arcinova and Olive Communications.

Gurinder Sunner, head of BGF’s Midlands team, said: “This is an exciting outcome for CHS Healthcare and BGF. We backed the business in 2018 and over the last two years the company has surpassed expectations. The exit has delivered a strong return for BGF and the other shareholders and set CHS up for further expansion. We wish the team all the best on the next stage of the company’s growth journey.”

Dr Richard Newland, chairman of CHS Healthcare, added: “BGF has been a fantastic partner at an important stage of the business’ growth. In a short space of time, we’ve expanded our services, brought in senior talent and pursued business critical acquisitions. We’ve thoroughly enjoyed working with Gurinder and the team at BGF and are confident the business will continue to flourish in partnership with Acacium Group.”

The exit was led for BGF by Gurinder Sunner and Chris Nixon.

Advisers to the transaction were KPMG Corporate Finance – Khush Purewal, Andrew Jordan, Bilal Mehboob; Gowling WLG – Chris Towle, Chris Letters, Lewis Broome;