Mezzanine Management has led a £120 million (€178 million, $240
million) refinancing of UK residential care group The Regard Partnership.
The specific terms were not disclosed, but a banking source said the total deal consideration was about £120 million. Mezzannine Management has invested £18 million for a minority stake in the business, while senior debt has been provided by Bank of Scotland.
The deal will allow UK private equity house Bowmark to exit from the company. Bowmark originally invested £6 million in Regard, which provides residential care for people with permanent learning difficulties, in July 2004 during a £22 million funding round.
Current Regard managing directors John Farragher and John Webster will retain control of the business. Mezzanine director Bal Johal has joined the board, where he will sit alongside non-executive chairman Roger Storey, who built Ridgmont Care Homes into a £90 million business.
This is the third investment from Mezzanine Management’s fourth fund, which is due to hold a final close shortly. It has been financed through a mixture of mezzanine debt and equity.
The company said in a statement that while the company will continue to provide mezzanine financing to support other buyout transactions, it is planning to concentrate on more self-sponsored deals.
The firm’s fourth fund has also participated in the €109 million ($148 million) buyout of French chemicals manufacturer Coventya, led by Natexis, and the €82 million acquisition of a French industrial heating business Vulcanic Group, led by 21 Centrale Partners.