A Manchester-based healthcare investment company has completed its latest acquisition of a specialist mental healthcare services operator in its buy, build and hold strategy as it aims to become one of the largest specialist healthcare investors in the UK.
Tristone Healthcare, which is aiming for £35m revenues in the next 18 months, has acquired Procare Wales.
Procare Wales, based in Rhyl, Wales, provides specialist mental healthcare services to individuals between the age of 16 and 64. The business was founded 20 years ago and also provides community living services for patients, this through their two high acuity specialist mental health care homes, Plas Lorna and Arnold House.
The purchase was part funded by Shawbrook Bank through a £4.2m term loan.
Tristone Healthcare founder and CEO, Yannis Loucopoulos, said:
“Procare Wales is a fantastic business which will support our efforts in providing safe, essential care to vulnerable adults. It is an extremely well managed business and will play an important role in our own ambitions of becoming one of the best providers of specialist healthcare services in the UK.”
“Due to the complex support needs of those vulnerable individuals that rely on Procare Wales’ services and the positive outcomes that are regularly achieved, Procare have established a strong reputation amongst commissioners, their workforce and within the communities they serve. We believe that the skills and passion of the Procare management team, complemented by Tristone’s strategic guidance and investment, will enable Procare to continue to positively impact vulnerable peoples’ lives and, through sensible growth initiatives, deliver the additional capacity that Local Authorities require.
“This is the second social care business we have acquired in the last 6 months and is an excellent example of our strategy of acquiring profitable social care businesses with a strong management team and a proven track record of delivering best-in-class care and support.”
Helen Shephard, founder and former owner of Procare Wales, will remain on the Board.
The acquisition of Procare Wales is the latest that Shawbrook has supported in the specialist healthcare market. Among the projects it has financed include the provision of funds for Envivo Group’s purchase of Heathcotes Group Ltd as well as its acquisition of Cwm Gelli Lodge, a 26-bed purpose-built facility in South East Wales.
“The support from Shawbrook, which enabled the completion of this acquisition, was excellent. The Shawbrook team have a genuine understanding of what we’re trying to do and are extremely knowledgeable in regards to the specialist healthcare market and the nuances and needs within it.”
Barry Septoe, Associate Director within Shawbrook Bank’s Healthcare Finance team, said:
“The demand for best-in-class mental healthcare and learning disability facilities in the UK has never been higher and by supporting ventures such as Tristone Healthcare’s latest acquisition, we are extremely pleased to be helping to fund investment within the industry at a crucial time.
“Tristone Healthcare is a team of experienced individuals that possess industry, business and transactional experience. They have already proven themselves to date through previous acquisitions in the sector and we are really looking forward to seeing how Procare Wales develops in the coming months and years under the stewardship and investment from Tristone Healthcare.”