Livingbridge taps PwC to explore Helping Hands exit

The sale process is in the early stages, said one of the sources. Helping Hands generates an annual EBITDA of at least GBP 15m, according to a third source familiar.

Livingbridge would want to have at least doubled its GBP 70m EV investment in Helping Hands and now close a GBP 140m-GBP 150m deal, according to a fourth source familiar.

The sponsor acquired the asset in 2018 from its founders in a Deloitte-led auction, as reported.

The company offers live-in, visiting and dementia care for elderly patients across the UK. In the full year 2020, the firm booked EBITDA of GBP 14.5m against revenue of GBP 147m, its latest publicly available accounts show.

Most companies in the sector operate on razor-thin margins, as reported.

Tech buyers
Its peers in the market have undergone a steady level of consolidation, especially driven by digital-first tech-backed platforms. Cera Care, for example, has developed tech that helps to cut core business costs putting it in a unique position to improve the financial performance of targets, CEO Mahiben Maruthappu earlier told Unquote sister publication Mergermarket.

It acquired the homecare arm of listed housing group Mears for GBP 30m in February 2020 and recruitment firm HCRG’s homecare division in October 2021, according to documents filed on Companies House.

Similarly, Home Instead, which has substantial operations in the UK through a franchise, was also bought by US-based digital-first home care provider Honor Technology.

Elsewhere, transactions have been driven by sponsors. Graphite-backed City & County acquired Apposite Capital’s homecare businesses in March 2021 while Palatine bought Routes Healthcare from Key Capital Partners in June 2021.

Livingbridge, PwC and Helping Hands did not respond to a request for comment.

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