3i has realised its investment in Robinson Healthcare to complete a trio of exits in recent months, all via secondary buyouts in the healthcare sector. In this case Royal Bank Development Capital acquired the business from 3i and the Robinson family for GBP22 million. Since the summer 3i has sold Castlebeck Care to HgCapital and CareTech Community Services to Barclays Private Equity.
3i invested in the GBP14 million IBO of the healthcare division of the Robinson Group in 1999. The company simultaneously acquired Smith & Nephew’s UK and Republic of Ireland Cotton Wool business and was renamed Robinson Healthcare. 3i took a 40 per cent stake in company, with management holding 20 per cent and the Robinson Group retaining a minority stake.
Based in Chesterfield, Robinson Healthcare manufactures and distributes personal care, woundcare and animal healthcare products. The 150-year old company supplies retailers, the NHS, pharmacies and veterinary surgeries. After significant growth in recent years it now has annual sales of GBP33 million. Terry Watson was appointed executive chairman 15 months ago.
Tenon Livingstone Guarantee advised management on the secondary buyout, Browne Jacobson provided legal advice, DLA advised RBDC and Freethcartwright advised the senior debt provider, Bank of Scotland’s Structured Finance team.