Craegmoor again switches buyout sponsors

Advent International has purchased the UK healthcare group from LGV Capital after watching the company for 'over seven years'. LGV acquired the business for £200m from a Warburg Pincus-anchored group in 2001.

Global mid-market firm Advent International has purchased Craegmoor Healthcare Group from European private equity firm LGV Capital.

Financial terms were not disclosed, though the firms said in a statement that last year, Craegmoor reported a £164 million turnover.

Craegmoor, which is primarly funded by the NHS and local authorities, is the UK’s largest independent provider of specialist care for adults and youth, providing services such as support for adults with learning disabilities. Its 6,000 employees are dispersed across 234 specialist and nursing care homes, independent hospitals, specialist adult colleges and supported living schemes across the UK. 

Advent said it will immediately allocate £13 million “to improve Craegmoor’s existing care facilities, and will put in place further financial facilities to support both organic and acquisitive growth”.

Founded in 1995, Craegmoor has been refinanced twice since LGV purchased the company in July 2001. LGV paid some £200 million to buyout the business from a shareholder group led by Warburg Pincus.

“We have followed Craegmoor for over seven years and now believe the timing is right for us to invest in the business,” said Tom Allen, the Advent director who led the deal.

“As new investors, we are able to focus on capitalising the business’ strengths and supporting management in driving further operational improvement and business expansion,” he said. “In the mid-term, we envisage that Craegmoor will be ideally placed to lead consolidation in the growing specialist care market.”

Advent has a 24-year history of investing in healthcare; it most recently acquired German nursing home operator Casa Reha.