August Equity, a UK mid-market private equity firm, is planning to sell its investment in Healthcare Homes, a nursing home group, with a price tag of approximately £80m (US$156m).
According to UK daily The Telegraph, NM Rothschild has been appointed to carry out a strategic review. August Equity declined to comment on the speculation.
The report added that potential trade buyers include Barchester Healthcare, a nursing home group owned by Irish horse racing tycoons John Magnier and JP McManus, which has previously acquired Castlebeck from HgCapital for £255m in mid 2006 and Westminster Health Care from 3i for £525m in 2004.
August Equity acquired Healthcare Homes Group in a £37m management buy-in in 2005, and has since carried out an extensive buy-and-build strategy, comprising bolt-on acquisitions of PriMed Group, The Manor House and Aldringham Court in 2006, Claremont Nursing Home and Meadow House in 2007 and Manorcourt Care earlier this year.
Yesterday, August Equity acquired Kentwood for its community care business Lifeways for an undisclosed sum.