Business Growth Fund portfolio company Springfield Homecare Services has closed its first acquisition since the business was supported by the bank-backed fund in June 2012.
Springfield Homecare Services, part of Springfield Healthcare Group, has bought domiciliary care business Positive Life Choices using capital provided by the Business Growth Fund (BGF).
Yorkshire and Humberside-based Springfield Healthcare Group is a care home operator which has 2,000 clients.
In June 2012, the company received £4.4 million of equity capital to be used across Springfield Healthcare and Seacroft Care Village.
As part of the deal with Springfield Healthcare Group, Leeds-based Springfield Homecare received £2.5 million to expand its geographical reach and increase the number of hours of care it can provide.
Newly-acquired Positive Life Choices, which is located in Newcastle upon Tyne will bring 2,000 hours of care to Springfield Homecare and give it a new presence in the North East. Furthermore, it brings the turnover of the overall Springfield Healthcare Group to £13 million per year.
Graeme Lee, founder and CEO of Springfield Healthcare comments, ‘This marks the start of an exciting period of growth into the North East for Springfield Homecare, alongside its existing progress within Yorkshire and Humberside.
‘BGF’s funding is enabling us to source similar excellent opportunities across Yorkshire and the North East where we can invest quickly, professionally and in alignment with existing management teams.’
Positive Life Choices was founded in 2007 by husband and wife team Ian and Amanda Dickinson and now has 90 staff.
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Richard Taylor, senior investment manager at the BGF, adds, ‘For businesses determined to grow quickly, a strategic acquisition can be a transformative moment.
‘However, buying another company requires deep pockets and the experience to integrate organisations in a way that realised their combined potential.
‘Funding also remains a major challenge for businesses with an acquisition target in mind – even if bank debt is available, it may not be the best way to finance the deal. In practice, equity capital is far less restrictive than bank debt, where the borrower is subsequently required to perform to very tightly defined criteria.’
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