Caledonia buys Choice Care from Sovereign
Caledonia Investments has acquired UK–based Choice Care Homes from Sovereign Capital for £86m.
Caledonia provided £49.5m in cash for an initial 97.7% stake – the remainder of the equity was rolled over by management. A syndicate of banks including RBS, Allied Irish and Santander Company provided £40m in senior debt facilities to finance the deal.
Caledonia and the banking syndicated stated that they were ready to provide additional capital to fund the business's expansion in the future.
Choice Care will pay a running yield to Caledonia, which is forecast to build over the life of the investment.
Sovereign Capital acquired Choice Care Group in 2002. Since then, Sovereign has further backed Choice Care with the bolt-on of Orchard End Group and Truecare Group. Choice Care also acquired Excel Support Services, a provider of supported living for people with learning disabilities, in November 2010.
Company
Based in Reading, Choice Care Homes provides care for individuals with learning difficulties, complex needs and challenging behavioural issues.
Choice Care generated an £8.9m EBITDA and had gross assets of £45.8m for FY2012.
People
Duncan Johnson is the head of Caledonia Unquoted Investments. Johnson, Charlie Edwards and Sally Flanagan led the deal for Caledonia.
Advisers
Equity - Osborne Clarke, Mark Spinner, Amy Salmon, Dominic Ross, Ben Truman, Nadine Strahl, Clare Ridgway, Camilla Fell, Erica Jupe, Mark Braude (Legal); DC Advisory, Richard Clark, Phillip Gutzwiller (M&A); Connell Consulting, Clare Connell (Commercial due diligence); Catalysis, Mike Hicks (Management due diligence); JLT (Insurance due diligence); Aon (Insurance due diligence); PwC, Jason Wakelam (Financial due diligence).
Vendor - CMS Cameron McKenna, Jason Zemmel (Legal).
Debt - Hogan Lovells (Legal).
Management - CMS Cameron McKenna, Jason Zemmel (Legal); Equita Corporate Finance, Chris Spanoudakis (M&A).
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