UK private equity turnaround specialist Alchemy Partners has reportedly made more than £300 million (€449 million; $556 million), representing a return of around four times its investment, from the £775 million sale of nursing home group Four Seasons to Germany’s Allianz Capital Partners, the private equity arm of Allianz.
Allianz was understood to have beaten off competition from fellow private equity firms including Blackstone Group and Electra Partners Europe in a competitive auction process. Allianz was advised on its bid by Pascale Maeter of Dresdner Kleinwort Wasserstein.
Alchemy made its initial investment in Four Seasons in 1999 and proceeded to invest around £75 million in building the company. In September 2002, it completed an add-on acquisition when purchasing Principal Healthcare Finance from Omega Worldwide in a £318 million deal.
The deal is the latest in a series of lucrative exits for Alchemy. Last month, it floated Scottish open cast miner ATH Resources on London’s Alternative Investment Market at a value equating to 4.4 times its original investment. Earlier in the year it made three times its money from the sale of UK jeweller Goldsmiths to Iceland’s Baugur and two times its investment from the sale of Irish educational software provider Riverdeep.