Clearwater advises Sovereign Capital on Eden buy-out

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Clearwater Corporate Finance has advised UK private equity buy and build specialist Sovereign Capital, on its backing of the management buyout of independent supported living provider Eden Supported Housing Limited.

Based in Newark, Eden operates from six offices across Nottinghamshire and South Yorkshire and its 560 staff provide long-term care and support for over 250 adults with a learning disability living in the community. In addition, Eden provides approximately 1,000 hours of domiciliary care per week for older or disabled service users in their own homes.

Established in 1994, Eden provides a broad range of person-centred support within its core business offering Supported Living opportunities for individuals with learning disabilities, physical disabilities and mental ill health issues. The business’s innovative, Eden Enhanced service offers tailored support and care packages for people with a learning disability and additional complex needs/challenging behaviours and/or mental health support needs. It provides expert accommodation and support, specifically designed to support individuals that challenge services. Eden has built a strong reputation locally for its services and has developed close links with the commissioning authorities that value its services as an alternative to costly, low secure provision or mainstream residential care.

Sovereign has been actively investing in the healthcare services sector since 2002, specialising in acute care provision. Its current portfolio includes Cascade Care, which provides residential care for adults with mental health needs, and Parallel Options, which supplies supported living for adults with learning disabilities and mental health needs.

Sovereign is in discussions with a number of Supported Living businesses across the UK to expand Eden’s geographic reach through acquisition.

Clearwater’s head of healthcare Andy Moore, commented: “Domiciliary care and supported living is a rapidly growing market within the healthcare sector, with service users increasingly being encouraged by NHS Trusts to live independently rather than remaining in costly mainstream residential care.

“Eden’s position as a regional market leader with excellent customer relationships in Nottinghamshire and South Yorkshire gives it a strong foundation to grow into new markets. Furthermore, Sovereign’s excellent track record in the sector should only act to accelerate Eden’s expansion.”

The transaction represents Clearwater’s second deal in the healthcare sector in 2010, after the firm advised UK support services group DCC plc on the £31 million sale of its mobility and rehabilitation business to Patterson Medical Limited, the Nottingham-based subsidiary of US business Patterson Companies Inc.

Andy Moore continues: “The long term dynamics in the healthcare sector are driving M&A activity. We have a number of other transactions in the pipeline and expect to see several more transactions completing in the next 12 months.”