A healthy return for Barclays Private Equity

UK private pathology operator, The Doctors Healthcare Group has been acquired by Australian company Sonic Healthcare Limited for GBP65 million. The deal is an exit for Barclays Private Equity, which backed the public to private management buyout of the group just over a year ago.

Barclays Private Equity originally invested around GBP20 million in a debt-free deal to fund the buyout and help grow the business both organically and by acquisition. Mark Taylor and Nathan Elstub managed the investment and sale for Barclays Private Equity and report a good return on the investment.

“Whilst our initial investment was made just 15 months ago, the Government’s plans to restructure the UK pathology market has attracted major overseas players,” said Mark Taylor, director Barclays Private Equity. “The deal with Sonic will enable TDHG to help retain its market-leading position and provide opportunities for further growth and we are delighted with the return on our investment.”

The Doctors Healthcare Group was formed in 1988 and has an annual turnover of GBP20 million. It has achieved a compound annual growth in revenues of 25 per cent over the past few years. Sonic has acquired the group as part of its global expansion and is keen to use the acquisition as an opportunity to play a major role in the healthcare markets in the UK and Europe.