Core Capital exits Ark Home to three trade buyers

Kenny Wastell
20 February 2018

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Core Capital Partners has sold its stake in UK-based domiciliary care provider Ark Home Healthcare to three separate trade buyers.

City & County Healthcare Group has acquired the majority of the group's operations, with MiHomecare and Westminster Homecare buying a handful of branches.

Under the GP's tenure, the group has undertaken an acquisitive growth strategy, making eight acquisitions across England.

The business increased its turnover from around £9m at the time of Core Capital's initial investment to £16.4m in the year ending in March 2017, according to publicly available documents. Since then, Ark Home has increased its turnover to £40m as a result of the acquisition of HC21's homecare business in April 2017, a source close to the situation told Unquote.

However, the business reported an operating loss in all but one year under the firm's tenure. In its most recent financial results, Ark Home reported an operating loss of £320,000, down from an operating profit of £650,000 in the year ending in March 2016.

The deal marks an exit for Core Capital Partners II, which closed on £85m in September 2015. According to a statement, the vehicle has returned 45% of capital to investors since its final close.

A spokesperson for Core Capital declined to comment on the returns generated from the Ark Home divestment.

Previous funding
Ashridge Capital and Core Capital first backed Ark in June 2010, when they invested a combined £17.5m in the acquisition of UK domiciliary healthcare providers AG Care, Breslin Health & Social Care and Mac Caring as part of a buy-in management buyout.

Company
Founded in 2010, Sheffield-headquartered Ark Home provides domiciliary care to people of varying ages and needs. The company has a headcount of 2,000 and operates from 17 locations across England.

People
Core Capital Partners – Stephen Edwards (managing partner).
Ark Home Healthcare – Simon Arnold (CEO).

Advisers
Vendor – BTG Advisory (corporate finance); Pinsent Masons (legal).