
Stirling Square cancels Outcomes First Group sale process
Stirling Square Capital Partners has halted the sale of Outcomes First Group, a UK specialist care and fostering provider, after almost nine months of trying to get a deal over the line, two sources familiar with the situation said.
The private equity firm, which had appointed Moelis and JPMorgan to run an auction earlier in the year, was working on a deal to sell the education part of the business to Onex, one of the sources and a third source familiar said.
But the two parties were unable to agree on a price for the unit, the first source added. Stirling Square was reported to value the whole business at more than GBP 1bn. The macroeconomic environment and a highly critical report from the Competition and Markets Authority (CMA) made it a difficult time to sell the business, the second source added.
ICG, Mubadala, and Civitas rounded up a thin field of parties who were involved in the process, according to a fourth source.
Stirling Square is now expected to continue the break-up of the company before relaunching the sale at some point, the first source added.
OFG works right across the UK social care landscape, operating more than 50 schools, 60 residential children's homes, 20 residential homes for adults, and more than 6,000 fostering places, according to filings.
As the timeline for the sale dragged on, the owner had been expected to consider placing the asset into a continuation vehicle or SPV, according to a fifth and a sixth source familiar. However, that option was ruled out as exit options for the asset would be more limited after five more years of growth, the same sources said.
Stirling Square declined to comment. Onex, ICG, Mubadala, and Civitas did not return requests for comment.
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater