Sovereign Capital announces bolt on acquisition for TRACS

Sovereign Capital, the independent UK lower mid-market private equity provider, announces that portfolio company TRACS Limited ("TRACS"), a leading group of specialist residential care homes for adults with mental health needs, has acquired Compass Care.

Sovereign has supplied funds to support the £5 million bolt-on as part of TRACS' strategy for organic and acquisitive growth. Bank of Scotland Specialist Property Finance has provided the debt. Sovereign originally completed the £26 million institutional buy-out of TRACS in March 2004. Operating in South Wales and the Midlands, the Group's roll-out strategy is ahead of plan with new services in autism and mental health now available. With the acquisition of Compass Care, TRACS will provide services for over 158 clients in 20 residential homes.

Compass Care runs residential care homes in Northampton and Suffolk for adults with Learning Disability and Mental Health needs. The business was set up in 2000 and has already developed a reputation throughout the UK for accommodating clients who may be making their first community placement from a secure unit.

Sovereign Capital is the most active private equity investor in UK health and social care with investments including Complete Care Group, the UK's leading provider of specialist care for young severely disabled people and C.H.O.I.C.E., which operates 34 residential care homes for adults with complex needs and severe learning disabilities.

Dominic Dalli, Assistant Director, Sovereign Capital commented:

"We are delighted with the acquisition of Compass Care which is an ideal fit with TRACS in every aspect; it is a quality operator, builds upon the range of services which TRACS already provides and is also complementary from a geographical perspective. This acquisition continues to demonstrate Sovereign's commitment to buy & build strategies."

Eric Millard, Chief Executive, TRACS commented:

"In the fourteen months since Sovereign's original investment, TRACS has seen tremendous development and most importantly has maintained the high quality of care which is so fundamental to our clients. Both Compass Care and TRACS have built strong reputations for the care provided and benefit from a national spread of referrers, who recognise the shortage of specialist residential resources focused upon Mental Health. With our enhanced service offering, we look forward to the next stage of our development."