BDO advises on sale of 11 specialist care services to Montreux Capital Management
THG provides hospital and residential care for young people and adults with mental illness, brain injuries which require rehabilitation or ongoing neurological care, or who have learning disabilities amongst other high acuity care needs. Patients and residents range from children and young teenagers to adults in their 60s. Services are delivered in specialist hospital registered facilities, or social care registered settings, where complex clinical and social care services are provided.
MCM is a healthcare specialist investment firm focusing specifically on the UK specialist care market. MCM has a strong track record of UK specialist care investments, such as its investment in Active Care Group, which supports over 2,000 patients across 60 locations in England, Scotland and Wales.
Completion of the transaction is subject to regulatory approvals, with completion expected to take place in Q1 of 2021. THG will work closely with the buyer and relevant regulators to ensure that the transition of the THG sites and staff to the buyer is seamless. Once complete, MCM will take over operations at 11 specialist care sites in England and Scotland with staff transferring to the new provider.
Montreux will continue to run the business under the Huntercombe name as a new platform investment in UK-wide high acuity specialist care. The platform will form the cornerstone investment for Montreux’s new Healthcare Fixed Yield Fund.
Stuart Deacon from the BDO Business Restructuring Special Situations team and Nick Freeman from the BDO Healthcare M&A team led the transaction on the sell side, providing a successful exit from specialist care for the appointed Joint Administrators of the Four Seasons Health Care Group (Alvarez & Marsal).
Commenting on the transaction, Stuart Deacon, partner at BDO said:
“This has been a complex sale process, not least because of the backdrop of COVID-19, so we are absolutely delighted to have helped our client to get this deal over the line. Montreux already operates an extensive network of UK specialist healthcare service providers and is therefore well placed to operate the Huntercombe facilities within its existing portfolio of investments.”
ENDS
Editors’ Notes
The 11 specialist care sites are:
Blackheath Brain Injury Rehabilitation Centre in London
Frenchay Brain Injury Rehabilitation Centre near Bristol
Hothfield Neuro-Rehabilitation Service in Kent
Murdostoun Brain Injury Rehabilitation Centre in Scotland
Conifer Lodge Residential Learning Disability and Mental Health Service in Cambridgeshire
Moorpark Place Residential Learning Disability and autism service in Kilbirnie, Scotland
Roehampton Mental Health Hospital in London
Granville Lodge Specialist Residential Service for Children in Hartlepool
Stockton Specialist Residential Care Service for Children in Stockton
Maidenhead Child and Adolescent Mental Health Services in Berkshire
Stafford Child and Adolescent Mental Health Services Hospital in Staffordshire
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