Private equity investor Spring Ventures has backed the MBO of Home from Hospital Limited, trading as HFH Healthcare (HFH), providing GBP10.6m of equity in return for a majority stake, in addition to underwriting the acquisition debt requirement.
Healthcare is one of four key sectors Spring Ventures focuses on. The UK market for high acuity home care is growing rapidly due to medical advances and increasing patient choice. It has recently seen high levels of acquisitive activity from private equity investors and trade buyers.
HFH was founded in 2011 to provide long-term homecare for individuals with highly complex medical needs such as acquired brain injuries or neurological conditions. The business currently works with 22 Clinical Commissioning Groups (CCGs) across London and the South East, and cares for the needs of c.130 individuals. Headquartered in Wimbledon, HFH employs c. 35 head office staff and circa 400 carers.
Spring Ventures has supported the new CEO Catherine Hellary in acquiring the business from its original founders. Since joining HFH in 2012, Catherine has helped grow the business’ revenues from circa GBP5m to almost GBP16m.
Spring Ventures’ Managing Partner Alex Brebbia will join HFH’s board, alongside incoming CFO Graham White and Chairman Roger Storey, both of whom have successful track records in the healthcare services sector and bring prior experience of working with private equity investors.
The management team expects to focus its growth on increased penetration of the adult care market in London and the Home Counties alongside further expansion into paediatric care.
Spring Ventures were introduced to the opportunity by Mazars Corporate Finance team, led by Nick Johnson and Simon Fitzsimmons. Mazars provided advice and support to Catherine Hellary and the management team.
Alex Brebbia, says: “This deal is representative of our focus of backing management buyouts of fast growing UK businesses, and of our flexible investment structure. Our ability to provide the equity finance and to underwrite the bank debt was critical to ensuring that the team were able to complete the management buyout within the optimum time frame.
“It is also an exciting opportunity for us to back a strong management team led by chief executive Catherine Hellary. We look forward to working with her and her team. With its focus on the highest standards of care, HFH is well placed to capitalise on its significant potential for growth as it increases penetration in its existing markets, strengthening its established position in London and the Home Counties.“
Catherine Hellary, new CEO of HFH Healthcare, says: “Spring Ventures has been focused, honest and pragmatic to deal with throughout the buyout process. This made them stand out as the right partner for us in the face of significant interest from other healthcare businesses and the wider investment community. With their support, I am delighted to lead the HFH Healthcare team through the next exciting stage of its evolution. Our focus now is to maintain our strong reputation and rate of growth, while continuing to deliver the very highest quality of care to our clients.”
