Kleinwort Capital Limited ('KCL') announced today that it has supported the acquisition of four care homes which will come under the umbrella of a newly formed company, Healthcare Homes Group Limited ('HHG'). This is the sixth investment by KCL's £130 million limited partnership, Kleinwort Capital Partners IV.
HHG has acquired 100% of the share capital of Abbott Healthcare Plc ('Abbott') as part of a £37 million 'buy and build' strategy to create a regionally focussed group providing elderly residential and nursing care with a high EMI (elderly mentally infirm) content. Abbott was established by its owner Gordon Ward, who acquired three of the homes in 2000 through a continuing long term contract with a local authority.
Richard Clough is Chief Executive of HHG. Mr Clough was previously Chief Executive of Care UK Plc, which he was instrumental in setting up and developing into one of the UK's most successful providers of care. The other executive directors at HHG are Graham Lomer (Finance) and David Bates (Operations) who both worked with Mr Clough at Care UK. Graham Lomer rose from Finance Director of the main operating subsidiary to become its Managing Director and subsequently became a main board director as head of business development. David Bates acted as Operations Director of the main operating subsidiary.
Together, the team were largely responsible for taking Care UK to a stock market valuation of over £100 million. KCL's healthcare investment strategy focuses on businesses with products and services within the healthcare sector including outsourcing services, diagnostics, medical devices, wellbeing, occupational health, specialist care and high street healthcare. KCL recently completed the sale of corporate wellbeing provider, Sona Group Limited to Nuffield Hospitals.
Philip Rattle, who led the HHG investment on behalf of KCL, said:
The care homes sector has seen a surge of corporate activity recently, reflecting the potential for high growth in the UK as demands for all forms of healthcare are expected to rise. HHG is an exciting investment for us as it ties in well with our expertise in the sector.
We are also delighted to be supporting Richard Clough, Graham Lomer and David Bates in their plan to develop HHG. Their track record demonstrates that they have the strategic, commercial and operational skills to run a successful care group. We look forward to working with Richard and his team in growing the business further over the coming years.
Richard Clough, CEO of HHG, commented:
Building and running a care group at an interesting time like this is an exciting prospect. With KCL's backing, we are confident of growing HHG into a successful venture.