Silverfleet Capital has agreed to acquire Care Fertility (CARE) from mid-market private equity firm Bowmark Capital for an undisclosed sum.
Pan-European private equity player Silverfleet said the investment will provide a platform for international expansion in what remains a highly fragmented market. It also plans to grow CARE’s UK network via acquisition as well as develop new products and services to improve patient success rates.
Nottingham based Care Fertility was founded in 1997 has expanded significantly under Bowmark’s ownership, including the acquisition of Zita West in 2017. It currently operates nine CARE branded clinics and 13 satellite facilities across the UK and the Republic of Ireland. In its latest accounts filed with Companies House for year ended 31 August 2018, the company reported EBITDA of £7m on turnover of £35m.
The deal represents Silverfleet’s ninth investment from its current fund and its first healthcare investment in recent years, although previous exits include UK based pharma company Aesica, German firm European Dental Partners and US based Sterigenics. Silverfleet said the investment builds on its extensive experience in the healthcare sector and fits its strategy of backing companies with strong underlying market growth dynamics.
Silverfleet partner Alfa Chan said: ‘CARE is a clear market leader operating in a sector with high growth potential fuelled by increasing fertility needs. It has a strong brand with leading patient outcomes and top quartile success rates. We look forward to working closely with the company’s management team and employees in continuing to develop the business.’
CARE CEO David Burford added: ‘Silverfleet is the ideal partner to take our business through the next stage in its growth. Their impressive track record in assisting companies to achieve their development plans and their extensive investment experience in the healthcare sector will be invaluable as we look to execute on our growth objectives. I have known the Silverfleet team for a long time and I am very keen to start executing on our business plan together.’
Silverfleet was advised by Lincoln (M&A), PwC (financial, commercial & tax) Ropes & Gray (legal, corporate), Deloitte (debt advisory), WA Communications (political), Intuitus (IT) and AJ Gallagher (insurance). Debt finance was provided by Apollo.
Bowmark Capital was advised by KPMG, and CARE’s management team was advised by Deloitte.