Graphite sells Optimum Care to Terra Firma's Four Seasons

Amy King
12 April 2013

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Graphite Capital has sold elderly care provider Optimum Care to Four Seasons Health Care, backed by Terra Firma.

In 2005, Graphite backed an experienced care homes management team to build a new nursing home group, Avery Healthcare. The GP provided a £29m development capital package, which included a £9m capital injection as well as debt and working capital from RBS.

In 2007, Graphite sold its majority stake in Avery to Southern Cross Healthcare Group for £96.5m. The buyer acquired 16 out of 21 of the firm's care homes and the management team's shareholding, while Graphite realised returns of 2.7x.

Graphite and the Avery management team then built Optimum around the five remaining care homes. Graphite injected a further £22m of equity capital into Optimum.

Graphite retains a stake in sister brand Willowbrook Healthcare, which it acquired for £53m in 2008. A £23m equity commitment was provided from Graphite Capital Partners VII and the management team. At the time, Royal Bank of Scotland, Allied Irish Bank and Bank of Ireland supplied a £30m senior debt package for the transaction.

Four Seasons Health Care provides elderly and specialist care. Terra Firma acquired the firm in an £825m buyout supported by debt arranged by Goldman Sachs and Barclays in 2012.

Company
Founded in 2007 and based in Northampton, Optimum now operates 17 homes with a total of 1,213 beds. The homes operate under the Avery brand name.

People
Mark Hudson is a senior partner at Graphite and worked on the transaction alongside Simon ffitch and Mark Hall.

Advisers
Vendor – Rothschild (Corporate finance); Candesic (Commercial due diligence).