- Aurelius Group announces the acquisition of Allied Healthcare
- We provided £20m asset based lending facility to support the deal
The European mid-market investor Aurelius Group has acquired Allied Healthcare from Saga. Allied Healthcare is the UK’s largest domiciliary care business and a leading provider of outsourced healthcare services to the English primary care sector.
An over 50s service provider, Saga announced at the start of the year that it planned to exit the market for publicly funded care by selling Allied Healthcare. This is due to tightened local authority budgets. They will receive a total fee of around £19 million, and will make a one-off £10m contribution to Allied Healthcare's pension fund as part of the deal.
Funding to support the deal has been provided by our asset based lending team in the form of a £20m working capital facility. This has helped complete the acquisition and provided working capital to support integration and the business' future plans.
Allied Healthcare has over 12,000 employees and in 2014 reported revenues of £282m. The company’s assets include: Visiting Care, the domiciliary care service; Primecare, an out-of-hours primary care service which includes staffing agency Allied Nursing; and Homecare Independent Living, a home care and housing and support services provider in Northern Ireland and Ireland.
Dirk Markus, Chief Executive of Aurelius Group:
"As a non-core asset of Saga, Allied Healthcare is a special situation investment that meets the Aurelius investment criteria on many levels. Aurelius regards the acquisition of Allied Healthcare as an opportunity to further grow and develop the company’s market leading position in the visiting care market: a critical service that supports the community care sector. Allied Healthcare is a mature business with strong fundamentals. It has suffered from a number of legacy operational inefficiencies but we are confident that these can be streamlined."
Tristan Nagler, UK Managing Director of Aurelius:
"The enormous pressures facing vital UK care service providers like Allied Healthcare as a result of cuts to local authority funding and the impending introduction of the national living wage are well known.
"Aurelius’ operationally engaged approach means it is well positioned to give Allied Healthcare the actively managed operational backing required to weather these challenges and ultimately build a strong and sustainable business in a sector that continues to grow. The finance facility has played a key role in providing the required working capital to complete the acquisition and support our plans for growth."
Jon Hughes, Business Development Director (invoice finance team):
"Allied Healthcare is one of the biggest names in the care industry and an impressive addition to Aurelius’ portfolio of investments. We are delighted to provide a working capital facility to support Aurelius’ purchase of the business."
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