UK mid-market turnaround and restructuring specialist Rutland Partners has sold healthcare services provider Advantage Healthcare to Interserve, the London-listed support services business, for £26.5m.
The deal, which marks Rutland’s final exit from its £210m 2000-vintage maiden fund, represents a gross return of 2.6-times Rutland’s equity investment.
Advantage was originally a group of businesses trading under the name BUPA Healthcare Professionals before Rutland’s £9m carve-out in March 2005.
The London-based firm then helped establish a standalone business under the Advantage brand, which has since been transformed into one of the UK’s leading home healthcare services providers, the firm said in a statement.
Advantage now operates from a national network of 27 branches and provides a range of home healthcare services to public and private organisations and users.
At the time of the acquisition, around 90 per cent of the business was focused on healthcare staffing, while just 10 per cent was focused on home healthcare, Rutland partner Oliver Jones told AltAssets.
In recognition of both the volatility and cyclical nature of the healthcare staffing space, and the overall superior clinical outcomes and cost-effectiveness of home healthcare, Advantage is now around 80 per cent focused on the latter, he added.
In April last year Rutland hired PWC’s corporate finance team to run a formal sale process for the business, which attracted more than 10 offers from both private equity and strategic trade buyers.
For the year ending December 31 2012, Advantage is forecast to report revenues of about £41m and EBITDA of around £3m.
The exit is the fourth of 2012 for Rutland, following the sales of NoteMachine from Fund I and Pulse Home Products from Fund II, both in August, as well as Attends Healthcare from Fund II in February.
Total proceeds realised for limited partners from the exits were about £190m.
The exits cap a busy year for Rutland, and follow new investments in Buy As You View and Pizza Hut UK Dine-In Restaurants as well as two bolt-on acquisitions for Brandon Hire and Laidlaw Interiors Group.
The deal was led on behalf of Rutland by partner Oliver Jones with support from managing partner Nick Morrill.
PWC provided financial advice to Rutland and Eversheds acted as the firm’s legal advisor, while Walker Morris provided legal advice to Advantage management.
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