Trio buy care home specialist

Three directors at a residential care provider for the elderly are set to benefit from the anticipated growth in its market by completing a £75 million buy-out.


Three directors at a residential care provider for the elderly are set to benefit from the anticipated growth in its market by completing a £75 million buy-out.

Three directors at a residential care provider for the elderly are set to benefit from the anticipated growth in its market by completing a £75 million buy-out.

Healthcare Homes, which controls 21 sites in Suffolk, Norfolk, Cambridgeshire and Bedfordshire, is now owned by chief executive Richard Clough who plans to grow the business through targeted acquisitions.

Clough bought the company from August Equity, which first invested in the business three years ago. He was joined in the buy-out by finance director Graham Lomer and head of operations David Bates who completed the deal after winning the backing of private equity firm Bowmark Capital.

This is not the first time Clough has worked with Bowmark as he has been a part of its previous investments in learning disability care provider Regard Partnership, drug and alcohol testing services group Medscreen and health and social care specialist Care UK.

Bowmark partner Kevin Grassby invested £35 million for a majority interest in the company, with senior debt provided by Royal Bank of Scotland (RBS).

Clough said Bowmark and RBS will provide further funds to enable management to grow the business through acquisitions and extending its existing homes.

Grassby, who was supported by Mark Salter, Ron Pearson and David Torbet, added that the buy-out team has a proven track record of building and running businesses in the sector.

“Management have already identified an attractive pipeline of potential acquisitions, and we are excited at the prospect of working with the team to build a national private-pay business,” he added.

Healthcare Homes provides nursing, residential and day-care services to the elderly as well as to younger adults with physical disabilities. It has more than 800 residential beds and 200 day-care spaces.

Marc Barber

Raven Connelly

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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