New Hoizons

01 March 2005

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Dunedin Capital Partners has backed the management buyout of New Horizons (Childcare) Holdings Ltd, a provider of residential childcare services, from vendors Chris Brannan, Vince Brannan and Rob Jones in a deal valued at Â£11.5m. Dunedin underwrote the whole deal, including a debt facility, to ensure the transaction completed within an agreed timescale. The institution invested Â£4.3m in equity in return for a 60% equity stake, while the management and Cherry Street Investments hold the remaining equity. Dunedin has also provided a Â£7.2m in debt, structured as 7-year term loan, to complete the funding. Catalyst Corporate Finance introduced the opportunity to Dunedin and advised the management team. The deal took approximately three months to complete.

Company

Shrewsbury-based New Horizons, which was founded in 1996, is a provider of residential childcare services for emotionally and behaviourally disturbed children. The company offers a range of therapeutic residential services to children and young people whose behaviour is the result of traumatic experiences. Its primary aim is to stabilise the emotional and physical behaviour of children and then work with them on determining the optimal route to further recovery and integration back into family surroundings or independent living. New Horizon operates ten homes, eight of which are owned, two of which are leased. The business is registered to provide care for up to 30 children from the ages of eight to 18. The group, which currently employs 100 staff, generated a turnover of Â£3.7m in its latest financial year.

People

Duncan Macrae and Dougal Bennett of Dunedin led, structured and completed the transaction for the institution. Macrae has joined the company as a non-executive director. Managing director, Simon Westwood, joined the company in February 2004 and leads the teamâ€™s drive and commitment to ensure it delivers the highest possible quality of care. Prior to joining New Horizons, Westwood was assistant director of Childrenâ€™s Services for Birmingham Council where he was responsible for 1,400 staff, 35 childrenâ€™s homes and the foster care service. Thelma Turner has been appointed executive chairwoman. Her background is in the residential care sector, having set up her own residential care home business in 1997, which she sold to Paragon Healthcare in 2002. In addition, John Adey has joined the board as a non-executive director. He was formerly chief executive of Baxters Healthcare and the National Blood Authority and is currently deputy chairman of the Swindon and Marlborough NHS Trust.