Healthcare Homes Group (HHG) recently acquired Manorcourt Care, a Norfolk-based privately owned care and nursing home group. "This is the eighth acquisition made by HHG since the original £37 million management buy-in in 2005," said August Equity partner Philip Rattle.
From a starting point of four homes, HHG now operates more than 900 beds in 21 homes, making it East Anglia's largest care home provider. "The UK market is incredibly fragmented," said Rattle. "The major players have a relatively small market share and there are a lot of small owner-managed businesses." Legislation and regulation make it quite cumbersome for individuals running their own businesses, with many opting to sell. "In terms of HHG, we recognised an excellent opportunity to consolidate a geographical region."
Another example of August Equity's buy-and-build approach is the recent acquisition of Kentwood by Lifeways Community Care (Lifeways). "Lifeways is a market-leading provider of supported living for 1,000 people with complex needs," explained August Equity investment manager Aatif Hassan. Both Hassan and Rattle were appointed to the board following the investment last summer. "Kentwood provides care to some 60 people in residential, domiciliary and supported-living environments throughout Bristol, Gloucestershire and Worcestershire," added Hassan. "The acquisition is in line with the strategy of August Equity and Lifeways management to increase Lifeways' geographical influence through organic and acquisitive growth."
August Equity is eager to capitalise on the huge growth opportunities in the healthcare service industry. "We're looking to strengthen our presence in domiciliary care, psychiatry and the field of acquired brain injury," said Rattle. "We're known for our commitment to growing our portfolio companies - across all our sectors. We have the knowledge, experience and support network, drawing on the experience and skill of people who have run much larger healthcare groups, yet prefer the challenges and hands-on nature of the mid-market."
August Equity offers comprehensive assistance throughout the acquisition process. "Needs differ, but for some of our companies we function almost as an in-house M&A team," said Hassan.
"Development of our portfolio companies takes place principally through organic growth, but it's also about acquisitions growth. We make sure the right teams are in place to deliver the operational improvements, sales growth and strategic positioning of the company."
To hear more from the August Equity Healthcare team, listen to the podcast at: augustequity.com/informer/podcastarchive
Planit Fusion offers interior design software that provides high-quality visual presentations of kitchens, bathrooms, living spaces, bedrooms and offices, as well as integrated front-end and ordering systems. In 2007, the business generated revenues of more than £7 million, 90 per cent of which came from European customers. Planit Fusion is a market leader in the UK, France, Spain and Scandinavia, and commands a significant market share in Germany.
Quebec-headquartered 20-20 Technologies is the world's leading provider of CAD and business and manufacturing software solutions for the interior design and furniture industries.
"The Fusion sale allows Planit's management to continue with its accelerated growth plans," said August Equity partner Sam Watkinson. "We reorganised the group to allow the sale of the retail division and to focus on end customers in the CAM market. This exit gives us a clear CAM growth strategy."
To hear more from the Media and Technology team, listen to the podcast at: augustequity.com/informer/podcastarchive
Formed in 2001, 12 Yard is one of UK TV's leading format creators and producers, responsible for In it to win it, Dog Eat Dog, Eggheads and Friends Like These. 12 Yard formats have been sold globally, including the US, Australia, Germany, France, Netherlands and Spain. "We are delighted that ITV showed such a keen interest in 12 Yard," said Andrew Hartley, managing partner at August Equity. "David and his team built an iconic hit machine that will continue to produce great shows for its clients."
"We're immensely proud to be teaming up with the ITV Global Content Division," said Young, 12 Yard's managing director. "ITV is the biggest commercial shop window in UK broadcasting. At a time when the demand for global hit formats is greater than ever, Andy and I believe that this new home can help establish the company as one of the world's leading creators and producers of quality entertainment formats."
Notably, he was involved in the acquisition of a 17.9 per cent stake in ITV, the acquisition of Amstrad and the acquisition of You Me TV.
Before joining BSkyB, Lonsdale (above) worked as business development manager at ITV and for KMPG Corporate Finance's Private Equity Group.
At August Equity, he will originate and execute deals across all four key sectors, with a primary focus on Consumer Products and Services. "This is another exciting addition to our investment team," said August Equity managing partner Andrew Hartley. "David possesses both the experience and expertise to enhance the origination and execution of investments in the UK lower mid-market."
To hear more from David, listen to the latest podcast at: augustequity.com/informer/podcastarchive.cfm
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