Advent will immediately allocate £13m for a capital expenditure programme primarily targeted at improving Craegmoor’s existing care facilities, and will put in place further financial facilities to support both organic and acquisitive growth. The UK-based healthcare group is the market leader and currently holds 5% of the market share.
LGV acquired Craegmoor Healthcare in July 2001. The healthcare group has a reported turnover of £164m and is the UK’s largest independent provider of specialist care for adults and younger people. It currently supports 4,000 people, employing more than 6,000 members of staff through 234 specialist and nursing care homes and independent hospitals. Its activities are primarily funded by local authorities and the NHS.
Tom Allen, director, Advent International said: “We have followed Craegmoor for over seven years and now believe the timing is right for us to invest in the business. The management team has implemented some highly-effective operational changes over the last couple of years which are delivering tangible results. As new investors, we are able to focus on capitalising the business’ strengths and supporting management in driving further operational improvement and business expansion. In the mid-term, we envisage that Craegmoor will be ideally placed to lead consolidation in the growing specialist care market.”
Advent has been an active investor in the healthcare sector for 24 years and has completed 25 investments, most recently in 2005 Advent acquired Casa Reha, a German nursing home operator.