Barclays Private Equity backs leading private care company
Barclays Private Equity has backed the secondary management buy-out (MBO) of CareTech Community Services, with a total funding in excess of £35m. CareTech is one of the UK’s leading providers of residential care and support for people with learning disabilities.
Barclays Private Equity has purchased a 40 per cent stake in the company replacing some of the existing shareholders including 3i. CareTech’s turnover has grown consistently; it currently stands at £13.4m and is expected to grow significantly as consolidation in the sector continues.
CareTech was founded in 1993 to provide market leading client services of outstanding quality, focussing specifically on people with learning disabilities. The company has grown consistently through organic growth and careful acquisition, currently operating 52 care services for 238 residential users and 45 day clients. The company operates small residential care homes, creating comfortable and homely environments that follow the principles of an “ordinary life”. CareTech is distinguished in the care market by the quality of its services and its departure from traditional institutional care.
The learning disability market has seen a strong demand for private sector care facilities in recent years, a trend that is destined to continue due to:
- The Care in the Community legislation, developed to support a move away from institutional settings such as hospitals.
- The national trend to close local authority operated facilities.
- Increasing acceptance of privately provided care services by relatives and service commissioners.
- Demonstrably improved quality of life offered by the very best independent providers.
Andrew Murtagh of Barclays Private Equity who led the deal said: “CareTech offers a quality of service rare in its industry. We are backing a proven incumbent team with a strong track record and have put in place significant additional funding to support their growth ambitions.”
The company has seen vigorous growth since 1993. Operating in a highly fragmented marketplace, there are significant opportunities for acquisition through consolidation, driving further expansion. This deal will allow CareTech to develop further high quality care places for individuals with a learning disability.
The management team undertaking this buy-out is led by CareTech’s founders, brothers Farouq and Haroon Sheikh, along with Graham Cook the Operations Director and Stewart Wallace the Development and Marketing Director.
Farouq Sheikh, Group Chief Executive said: “In under ten years we have developed a range of leading edge care services from structured day care to specialised residential services including unique provision for people with early onset dementia and outstanding support for people with autism. With demand constantly outstripping supply, this investment by Barclays Private Equity will allow us to continue our first class care to an increasing number of people.”
As a result of this investment there are three main areas that can now be pursued for expansion: developing the existing portfolio; extending services and properties and through acquisition. The company currently has a broad spread of property across five key regions primarily in the South East and operates at the moderate to challenging learning disabilities end of the market.
Pressekontakt
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UK
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Birmingham
- MC2
- Amy Cantrill / Emma Gage
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Manchester
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- Liam Buckley
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