OMERS PE acquires Lifeways from August Equity

Sonnie Ehrendal
11 June 2012

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The private equity branch of Canadian pension fund OMERS has acquired British healthcare services provider Lifeways from August Equity.

The new investor acquired a majority stake, while the management team reinvested "substantially" in the newco. The deal represents a full exit for August Equity.

OMERS believes that the supported-living market is currently fragmented, but offers long-term growth potential and increasing barriers to entry. It looks to grow the company organically and through acquisitions, focusing on expansion in terms of geography and service offering.

Debt
A £125m senior debt package was arranged and underwritten by Bank of Ireland, GE Capital, HSBC, Lloyds, RBC Capital Markets and The Royal Bank of Scotland.

Previous funding
Nomura International initially backed Lifeways in 2005, investing £5.5m for a 33% stake in the company.

In 2007, August Equity backed an MBO of the business, which saw Nomura exiting its investment and the management team taking a minority stake in the newco. The deal was supported with a debt package from HSBC.

Company
Lifeways, founded in 1995, provides supported-living services for adults with learning disabilities. Headquartered in London, with 33 offices throughout the UK, the company employs 6,300 staff and generates a £72m turnover.

People
Senior managing director Mark Redman represented OMERS. Partner Aatif Hassan worked on the exit, and original buyout, on behalf of August Equity. Paul Marriner is CEO of Lifeways.

Advisers
Vendor – Rothschild, Dominic Hollamby, Issy Corbett (Corporate finance); Macfarlanes, Simon Perry (Legal); PricewaterhouseCoopers, Chris Glazier (Financial due diligence); LEK, Jonathan Sparey (Commercial due diligence).
Management – Shoosmiths, Sean Wright (Legal); Lester Aldridge, Peter Grose (Legal).