Care provider finds route to growth with private equity deal
GROWING domiciliary care business Routes Healthcare, which provides NHS-funded intensive home care, has secured “substantial” investment from Leeds-based private equity firm Key Capital Partners (KCP).
The investment is the first to be made following the launch of KCP’s £80m growth fund last November. KCP has a track record adding value to businesses in this sector, including experience with Nurse Plus and Hallam Medical.
Routes Healthcare was established in 2005 by current managing director Andrew Healing. Over the last 11 years, the business has grown to nine offices, serving public sector bodies, blue chip organisations, SMEs and private individuals.
The branch network, covering many parts of the North of England, is extensive and located within Bradford, York, Settle, Blackpool, Macclesfield, Cheadle, Liverpool, Preston, Rochdale, Salford, Stockport, Newcastle and Tameside.
The KCP team which executed the deal was led by investment partners Mike Fell and Philip Duquenoy, assisted by investment manager James Excell. Mr Fell will join the board of Routes Healthcare to provide strategic advice to the business.
Andrew Healing, managing director of Routes Healthcare, said: “With its proven experience in the healthcare industry, KCP was the ideal investment partner for us to assist with our continued growth. Excellence in all we do is the company’s philosophy and the expertise of their senior advisers and the invaluable strategic advice they can bring to management teams were crucial factors in our decision. Maintaining excellence in the clinical care we deliver is imperative and we are already enjoying working closely with KCP to ensure this is managed safely as the business grows.”
Mr Fell said: “Building on our deep sector expertise working with companies like Hallam Medical and Nurse Plus, this is a great opportunity to support what is already a very successful business, to reach the next stage of its development.
“Andrew has built a strong reputation for Routes Healthcare; it is trusted by Clinical Commissioning Groups for providing quality, personal service and value for money. Our investment will provide development capital to support the continued expansion of the network of branches both organically and through acquisition while ensuring that the business’ ethos of ‘always putting the patient first’ remains central to all services.”
Jeff Barber, partner at BTG Corporate Finance, added: “I am delighted that we have been able to assist Routes Healthcare in securing this development capital. I firmly believe that the combined experiences in this sector of Key Capital Partners and Routes Healthcare will be a key driver of the future success of the business.”
