UK - Sovereign acquires residential care specialist

Alkare has established a strong reputation for innovation within the sector, through initiatives such as the introduction of nurse-led therapy centres that enable clients to make the transition from hospital with nursing support into more independent living within the community. Alkare provides services for over 50 clients in and around Swansea. The group employs over 120 staff, who provide a range of therapies and support to help clients with complex needs associated with mental illness.

Sovereign has supplied funds to support the acquisition and to finance the strategy to grow the business through the roll-out of further homes and therapy centres and through the development of complementary services. The Group will be managed by a first-rate management team led by Eric Millard, formerly managing director of Florence Nightingale Hospitals and a manger previously backed by Sovereign Capital.

This is the sixth investment Sovereign Capital has made in the health and social care sector in the last two years, consolidating the firm’s position as the leading UK private equity investor in this sector. Recent investments include the £12m bolt-on acquisitions of Tregynon Hall and Aran Hall for portfolio company, The SENAD Group, which provides care and education for children and young adults with special educational needs. Other sector investments include the £12.5m institutional buyout of Orchard End Group and the £15m BIMBO of Truecare, both specialist care homes providers for adults with mental health needs and permanent learning disabilities.

Dominic Dalli, Sovereign Capital comments: 'Alkare has established a first-class reputation in this sector. The company’s combination of long-term residential care and nurse-led therapy centres meets the needs of clients and makes Alkare a unique provider in the sector. Sovereign knows the sector well and our financial commitment and contact base will help support the roll-out of Alkare.'

Alkare was acquired from private shareholders who were advised by Gambit Corporate Finance. Debt for the transaction was structured by Martin Cordey of Lloyds TSB Acquisition Finance, Birmingham. Dominic Dalli, Jose Rodriguez and Andrew Hayden of Sovereign Capital led the transaction. Dominic and Andrew join the Alkare board.

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• Buyouts
• UK / Ireland