MITIE Group has bought domiciliary care provider Enara from private equity firm August Equity for a price of £110.8 million.

August Equity initially backed the management team of Enara back in 2008, and has since gone on to support over 50 buy-and-build acquisitions.

London-based Enara was formed to provide a number of ‘critical services’ delivered at home or in the community. It has a focus on the elderly and a strong regional presence in the south of the UK.

For the year to date 31 March, Enara is expected to have revenue of £93 million and an operating profit before amortisation of £10.1 million.

MITIE, which has closed the deal on a cash and debt free basis using a new bridge debt facility of £150 million, says the community care market is a significant strategic opportunity for the business and an ‘ideal entry point’ into the health and social care sector.

The company also adds that the demographic and economic drivers of an ageing population, together with on-going cost pressure is encouraging a shift both from hospitals and residential care homes towards greater care in the community.

Ruby McGregor-Smith, chief executive of FTSE 250-listed MITIE, an energy and outsourcing services group, comments, ‘We are delighted to have made this strategic acquisition, which establishes us as a market leader in home care. Enara will provide us with a step-change in our service proposition as well as a platform to grow in the wider healthcare sector.’

Aatif Hassan, August Equity partner, adds, ‘We are very proud of what we have achieved with the business.  Enara has grown phenomenally in the four years since our initial investment with profits growing 15 fold.

‘We pride ourselves in backing high quality management teams and the tremendous achievements in Enara are a testament to the hard work and dedication of the management team. It is well positioned for growth and we wish the team every success in the future.’