Sovereign sells specialist care provider Complete Group returns 5.7x investment

Sovereign Capital ("Sovereign"), the UK buy & build private equity specialist, announces the realisation of its specialist homecare services provider Complete Group ("Complete"), through a £33m sale to Claimar Care Group Plc. The exit returns 5.7x Sovereign's investment and represents an IRR of 51%.

Complete, based in Telford, is the UK's leading provider of bespoke care packages to adults and children with severe long-term illnesses or disabilities in areas such as spinal injury recovery.  Through its unique blend of social and clinical support provision, the Group focuses on promoting independent, supported living in the client's home. Complete cares for over 200 clients, many of whom are young adults now enjoying a positive quality of life.

Sovereign first invested in Complete in December 2002, supporting Barbara Scandrett and her team through a management buy-out.  Sovereign's deep sector knowledge combined with Complete's strong growth potential and stable client base, enabling excellent earnings visibility, offered Sovereign the ideal platform for their buy and build strategy.

Since the buy-out the business has grown significantly.  Sovereign's support has enabled Complete to expand its services geographically and to provide care for a broader range of disabilities, which now encompasses cerebral palsy and muscular dystrophy, as well as provide paediatric care.

In 2007 Sovereign completed the bolt-on acquisition of Paediatric Nursing Link for Complete. This strategic acquisition not only significantly enhanced the Group's penetration into the high-end paediatric care sector, but also gave Complete improved reach into the London area.

Since 2002 Complete has more than doubled the number of clients it cares for and the Group currently has a dedicated team of over 600 staff. This has resulted in strong and consistent year-on-year revenue growth, averaging 27% per annum over the last three years.  Complete now achieves EBITDA in excess of £3m on turnover of £22m.

This is the third exit from Sovereign's first Fund (SCLP I). The Fund contains nine further investments which continue to grow strongly. Cash returns now exceed 1.8x (monies drawn) and the fundwide IRR is currently 53%.

Commenting on the transaction Andrew Hayden, Managing Partner at Sovereign, said:

"Complete is an excellent business which has gone from strength to strength over the past five years. Complete's consistent record of growth clearly illustrates the value of our buy & build approach. We are delighted with the result."

Barbara Scandrett, Managing Director of Complete, adds:

"It has been a pleasure to work closely with Sovereign to grow Complete into the business it is today. In Sovereign we were fortunate to find a partner who shared our vision and passion. We are now able to provide our care to many more clients, making a real difference to their quality of life."

Sovereign's deep sector knowledge and its strong relationships with management teams enable both its investors and its investment companies to maximise value from managed growth.