3/11

City & County Healthcare completes seventh bolt-on

08/11/11

Sovereign Capital, the UK private equity Buy & Build specialist, today announces the acquisition of Springbank Community Care Limited (“Springbank”) by portfolio company City & County Healthcare, the Group’s seventh bolt-on since Sovereign’s investment in September 2009.

Similar to City & County, Springbank is a domiciliary care business, providing care in the home predominantly for elderly people and also for those with more complex needs, such as learning disabilities. Based in Stoke-on-Trent, Staffordshire, Springbank currently provides around 2,800 hours of care per week, and has a strong market share in its areas.

Since Springbank was founded in 1995 the business has developed a reputation as a high-quality provider, with a Good’ CQC rating and strong customer referencing.    The business employs around 105 well-trained staff, the majority of whom are qualified to at least NVQ2, and enjoys very low staff churn rates.

The acquisition of Springbank creates significant value by enhancing City & County’s geographic footprint in the North West, with Springbank located between the Group’s branches in Lancashire and the West Midlands.

City & County has continued to see significant organic growth in recent months, with a number of major contract wins. The Group has also put in a place a centralised infrastructure, which has aided the swift integration of the previous bolt-on acquisitions.

Commenting on the transaction, Dominic Dalli, Partner at Sovereign, said: “Springbank is a significant acquisition, which consolidates City & County’s presence in the North West and provides a platform from which to pursue further organic growth.  Only two years after investing in City & County, our Buy & Build strategy has enabled the Group to expand into a truly national provider, delivering almost triple the number of care hours as at acquisition.”

Craig Rushton, Group CEO of City & County, said: “We are delighted to welcome Springbank Community Care into our organisation. Its North West location and more importantly, its ethos of providing a quality service make it an excellent and complementary addition to the group.”

Sovereign has committed total funding of £25m to City & County and continues to assess further Buy & Build opportunities to expand the Group’s reach and develop its service offering.

For further information please contact: Julie Sieger, Sovereign Capital, on +44 (0)20 7340 8800 or email:juliesieger@sovereigncapital.co.uk