Charme invests in Livingbridge-backed Witherslack

Financial details of the transaction remain undisclosed, though a source close to the situation told unquote" Charme will take a majority stake via the transaction. The GP typicaly makes investments in companies with valuations of between €100-500m.

It is also understood that Livingbridge will reinvest to retain a significant minority stake in the company alongside management.

Under the vendor's six-and-a-half-year tenure, the business expanded by investing in the construction of new sites, most recently building schools in West Yorkshire, Oxfordshire, Leicestershire and Tyne & Wear in the second half of 2016. According to Livingbridge's website, more than half the sites currently operated by Witherslack have either been opened or significantly expanded since the GP's initial investment. Livingbridge has also overseen the recruitment of a group chairperson, managing director, finance director, business development director and director of quality assurance.

Witherslack will undertake an organic growth strategy under its new owners and look to further expand its national footprint, according to a statement issued by the acquirer.

The deal is Charme's second UK investment and the fourth to be completed by its third fund, which held a first close on €450m in January 2015. In September 2016, the GP acquired a majority stake in Maldon-based classic cars business JD Classics from its founder. The Milan-based firm launched its London office in November 2015.

A spokesperson for Livingbridge declined to comment on the returns generated from the deal.

Details related to the debt package remain undisclosed, though it is understood Charme is typically conservative in its approach to leverage.

Previous funding
Livingbridge acquired a majority stake in Witherslack (then known as James Bowers Education) in February 2011. According to regional business news publication The Business Desk, the GP invested £20m as part of the transaction.

Company
Founded in 1996 and headquartered in Lupton, Cumbria, Witherslack is a provider of specialist education and care for children and young people with social, emotional and mental health needs, communication difficulties and complex learning needs. The business consists of 12 schools; 12 child accommodation sites; four integrated learning centres comprising year-long care and education; and an assessment centre offering short-term accommodation and support for children before they are placed in one of the company's schools.

According to publicly available documents, Witherslack generated a turnover of £44.1m in the year ending inAugust 2016, with profit on ordinary activities before taxation of £5.4m.

People
Charme – Julian Huxtable (partner).
Livingbridge – Adam Holloway (partner).
Witherslack – Phil Jones (CEO).

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