Sovereign Capital announces the £9.2 million institutional buy-out of Principal Care Services the Special Educational Needs school

Sovereign Capital Limited ("Sovereign Capital") announces that it has led the £9.2 million institutional buy-out of Principal Care Services Limited ("PCS"), the residential schools group for children and young adults with Special Educational Needs (SEN).

Sovereign Capital has supplied funds to support the IBO. Bank of Scotland's Specialist Property Finance Unit provided the debt funding.

Based in Herefordshire, PCS currently comprises three purpose built facilities including Rowden House that caters for children with severe learning disabilities, and Winslow Court, a neighbouring facility which cares for young adults with similar difficulties.

There is a distinct shortage of facilities that are able to manage the needs of those who are at the more challenging end of the SEN spectrum. PCS has the experience to fulfil such needs and the new funding package will enable these specialist facilities to be expanded. Established in 1978 and with over 60 clients, PCS has a strong reputation in the market place, echoed in the client referrals from all over the country.

As a family owned business PCS was keen to find a buyer who could continue to develop the group while at the same time retain the key characteristics and services which the business was built upon. Sovereign Capital, which is the largest UK owner of independent mainstream and SEN schools, developed a plan that addressed the succession issues the vendors had.

This latest transaction is the fifth investment in Education and Healthcare Services that Sovereign has made in the last eleven months. The other investments are the IBO of Honormead, the UK's pre-eminent group of residential schools for children with Special Educational Needs; the MBO of Complete Personal Assistance, the UK's leading provider of specialist care for young severely disabled people; the MBO of C.H.O.I.C.E., a provider of residential services for adults with learning disability and the IBO of Davies Laing & Dick, the independent schools group.

Ryan Robson, Director, Sovereign Capital Limited, commented:

"There is significant demand for specialist facilities in the SEN market. Quality operators like PCS are in the minority and there is a real opportunity to expand these much needed services to deliver positive outcomes for the client groups. We have a great deal of experience in SEN and succession issues in family owned businesses and we believe that we will be able to play a significant role in the optimum growth strategy of PCS".