Deal completed to acquire children’s residential care provider
Yorkshire dealmaking firm, Castle Square Corporate Finance, has advised First Blue Healthcare & Education Ltd on its acquisition of Nurture Childcare Services Limited and on six-figure growth capital fundraising provided by lender, Thincats.
Headquartered in Staffordshire, First Blue is a provider of residential care and support to vulnerable children, aged between eight and 16, with special educational needs.
Within five years of forming the company, the First Blue Management Team have registered and opened six residential care properties, all located across Staffordshire and the Midlands.
First Blue has acquired North West-based 16 bed children’s residential care provider, Nurture Childcare Services. The acquisition takes the total number of available children’s beds within the First Blue portfolio to 34 across 13 properties.
The structured funding package provided by Thincats, refinanced the existing lender within First Blue, as well as provided additional capital to fund the purchase of a further five properties from which the First Blue services will be provided.
The additional properties are expected to be renovated and registered by early 2023 and will increase the number of individuals First Blue can support to 50.
Later this year First Blue will also open its first school. It will be dedicated to giving children not suited to mainstream school an alternative environment to meet a wider range of educational needs.
First Blue was formed by CEO Chris Smith in 2017, with the vision of establishing a market-leading children’s care business that provides vulnerable children with the opportunity to receive support needed to develop into individuals capable of fulfilling their potential.
Chris Smith is supported in the day-to-day running of the business by operations director, Diane Smith and finance director, Callum Henderson.
Chris Smith said: “It is fantastic to have secured the fundraising from Thincats that will allow us to continue our development whilst providing the highest level of support to more and more vulnerable children in society.
“The plan for the next few years is to continue developing the services provided by First Blue Healthcare and this fundraising allows us to accelerate these plans.”
Led by director Patrick Lynch, Sheffield-based Castle Square Corporate Finance led on deal negotiations on the acquisition and ran a competitive fundraising process. After receiving multiple funding offers, Thincats emerged as preferred funder.
Lynch said the fundraising and acquisition would accelerate First Blue’s growth plans.
He added: “The new partnership with Thincats, will allow the management team to further deliver substantial growth over the next few years and help First Blue become a first-class national care provider to vulnerable children across the UK.”
Richard Henshaw, director, National Development Healthcare, ThinCats, said: “The team at First Blue have an incredible combined catalogue of experience and demonstrated expertise across the board.
“It was fantastic working with Patrick and the team at Castle Square Corporate Finance team, and we look forward to continue supporting the ambitious plans that First Blue has for the future.”
Midlands-based law firm, Higgs LLP, led by Associate Damian Beard, provided legal services and advice to First Blue on the fundraising transaction.
Beard added: “We have advised First Blue on a couple of occasions in recent years and it’s always a pleasure to deal with a fast-growing, proactive client.
“This was a smooth transaction from start to finish and we hope to work with them again and forge a long-term relationship.”
Other advisers acting on the transaction included: The Sheffield office of Irwin Mitchell, which provided legal advice to Thincats. George Green provided legal advice to First Blue on the acquisition of Crackerjack.
