Bridges invests £10m in Shaw Healthcare

The equity for the transaction was drawn from the GP's permanent capital fund, Evergreen Holdings. As a result, the firm intends to remain invested in Shaw for longer period than the standard four-to-six-year holding typically associated with private equity.

The GP expects Shaw to grow organically in the coming years due to the UK's changing demographics, fuelled by an aging population and rising life expectancy.

As part of the deal, Bridges Evergreen Holdings' executive chairperson Scott Greenhalgh will take a seat on the Shaw board as non-executive director.

The GP has a track record of investing in the care provision space. In 2014, it backed domestic care provider Alina Homecare – for which it has since provided various follow-on funding rounds – and acute medical care provider Orla Healthcare.

The investment in Shaw is expected to complete in December.

Company
Shaw was founded in 1986 by current CEO Jeremy Nixey and is headquartered in Cardiff. It provides supported living services and residential, nursing and domiciliary care for the elderly, including those with dementia and mental health issues. It operates 51 care homes across the UK.

Shaw has a headcount of around 3,500. It generated revenues of £93m and an operating profit of £8.4m in the year ending in March 2017, according to publicly available documents. Around half of its income comes from long-term contracts with the NHS and local authorities. The business is currently majority owned by its employees, and will continue to be following the Bridges transaction.

People
Bridges Evergreen Holdings – Scott Greenhalgh (executive chairperson).
Shaw Healthcare – Jeremy Nixey (founder, CEO).

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• Topics
• Expansion
• UK / Ireland
• Healthcare
• United Kingdom
• Bridges Ventures