Sovereign Capital supports £20 million management buyout of UK healthcare services company

Sovereign Capital Limited ("Sovereign Capital") announces that it has led, negotiated and structured the £20 million management buyout of Community Homes of Intensive Care and Education Limited ("C.H.O.I.C.E.").

The transaction includes initial funds to support the management buyout and additional development capital to fund organic growth and acquisitions. Sovereign Capital has invested and committed a total of £8.7 million and Lloyds TSB Acquisition Finance has provided the debt funding.

Founded in 1992, and based in Bagshot, Berkshire, CHOICE provides specialist services and residential care for adults with complex needs and severe learning disabilities. The company has its own in-house team of psychologists and offers clients a range of educational and therapeutic services. The management buyout team is headed by Paul Gold who has been Managing Director since 1993. The team has recently been strengthened by the appointment of Edwina Johnston, Finance Director, previously Group Finance Director of H.Young Holdings Plc.

Sovereign Capital has a successful track record of investing in the healthcare services sector. Notable previous healthcare investments include Care UK plc, Speciality Care, Craegmoor Healthcare, CVS and Ambic. The investment in CHOICE reinforces Sovereign Capital's expertise and commitment to invest in the healthcare services sector.

Paul Gold, Managing Director of CHOICE, commented:

"Sovereign Capital's sector knowledge and expertise have proved invaluable during the MBO process. An independent and highly proactive team, Sovereign Capital made decisions quickly and showed real tenacity through the process. I expect Sovereign to be active partners as we seek to develop and grow CHOICE in the future."

Andrew Hayden, Director, Sovereign Capital commented:

"We are delighted to be backing a proven, successful manager in a sector which we know well and have invested in previously. Paul Gold's commitment to providing a high quality service matched by our financial commitment will ensure the successful expansion of CHOICE. This investment further strengthens our position and expertise in the healthcare services sector."