Palamon acquires care provider

London-based mid-market private equity firm Palamon Capital Partners alongside European private equity firm G Square have acquired a stake in Spanish home care provider Grupo SAR for an undisclosed sum.

The investment will provide expansion capital for Grupo SAR, which provides residential and home care services to the elderly.

Following the transaction the Spanish company will continue to be chaired by founder, Higinio Raventos, and Jorge Guarner, the existing CEO.

Principal at Palamon Capital Partners, Jaime-Enrique-Hugas, said: “This is a high quality business led by a strong management team. We are confident that Grupo SAR’s focus on higher dependency needs positions the company well to take advantage of the growing demand driven by Spain’s changing demographics.”

Spain has developed a reputation for underinvesting in long term care compared to other EU countries but planned legislative reforms are aiming at imposing higher standards of care in the country. Grupo SAR has already established a partnership with the public sector.

Established in 1992, Grupo SAR manages 39 residential and day care facilities. It serves over 1,200 and employs 6,350. The company generated revenues of €127m in 2008.