LDC gains 2.8x on NRS Healthcare exit

LDC, the UK-based private equity arm of Lloyds Banking Group, has sold its investment in NRS Healthcare, a healthcare services and equipment business that works closely with the National Health Service and local authorities, according to a statement.

The firm did not disclose financial details of the transaction, but said it gained 2.8x its investment in the business. It will retain a minority stake after the sale to H2 Equity Partners.

During its holding period, LDC supported a transformation of NRS' business model to become a full service provider of domiciliary care and home adjustment equipment and services, as well as the significant organic growth and infrastructure investment.

Revenues increased 46 per cent to a forecasted £132 million ($207 million; €167 million) in the current financial year from from £90 million in 2013, according to the firm. NRS also increased its staff by a third 734 employees from 553.

“In just two years we have seen a dramatic increase in the outsourcing of care services, but also rapid development of the lead provider model which is helping to deliver joined-up first-rate support to customers,” John Garner, director and head of LDC in Yorkshire and the North East, said in a statement.

“With a broader investor base, alongside H2 Equity Partners, we look forward to continue our backing for NRS and help the management team drive forward the evolution and scaling of the business.”

Phil Isherwood, chief executive at NRS Healthcare, added, “Following the original buyout, our business needed a real step change to make sure that we remained at the forefront of the market. The investment from LDC has proved essential and the team have been on hand to offer guidance through the transformation. Now with increased support from a broader investment base, we are focused on developing our proposition and the range of services we can offer our customers.”

The NRS deal represents LDC’s eleventh exit so far in 2014, having recently completed the partial exit of its investment in Kirona through a secondary buyout, the sale of Vysionics and the IPO of Fever-Tree. The firm focuses on investing in UK-based companies seeking between £2m and £100m of equity for management buyouts, institutional buyouts or development capital transactions.