City & County Healthcare acquires Sterling to create UK's 5th largest domiciliary care provider

Sovereign Capital, the UK private equity Buy & Build specialist, today announces the acquisition of Sterling Homecare Limited ("Sterling") as the first bolt-on for its domiciliary care provider, City & County Healthcare (formerly London Care). 

Based in Blidworth, Nottinghamshire, Sterling provides c7,000 hours of care per week to the elderly in their own homes, under contract to Local Authorities, Primary Care Trusts and a number of private clients.  Each of Sterling's five branches across Nottinghamshire and Leicestershire are rated as "good" by the Care Quality Commission, as reflected in the strong customer relationships and local market reputation.

Sovereign's Direct Origination team has known and followed Sterling since 2009 and has been impressed by the company's focus on client care and its strong position within its attractive, regional markets. 

Together, Sterling and City & County Healthcare's operating brands create the fifth largest provider of domiciliary care in the UK.  The Group now employs 1,800 staff across 18 branches, including 1,680 care workers, assisting elderly people with their everyday tasks and enabling them to receive care at home in their later years.

Since investing in City & County Healthcare in September 2009, Sovereign has augmented the management team through the appointment of Craig Rushton as CEO.  Craig brings significant sector expertise to the Group having previously been CEO of Healthcare Australia PTY Ltd, the largest commercial domiciliary care business in Australia.  The Sterling management team, led by Stuart Carlton and Debbie Woolley, will work alongside Craig to operationally integrate the businesses and continue to grow the regional customer base.

Commenting on the transaction, Dominic Dalli, Partner at Sovereign said: "We are delighted to be able to expand City & County Healthcare's geographic reach through the acquisition of Sterling.  In doing so, we are pleased to be able to satisfy both the ongoing outsourcing drive by local authorities, whose commissioners recognise the benefit of domiciliary care as a lower cost alternative to residential elderly care in most instances, and the personal preference for end user clients to stay in their own homes."

Craig Rushton, CEO of City & County Healthcare added: "We are pleased to welcome the team at Sterling to the Group and look forward to working with them to take advantage of the significant tender opportunities available to build on their impressive growth in the Midlands."

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