Duke Street exits Baywater Healthcare UK

Duke Street has sold its controlling stake in Baywater Healthcare UK to Bastide Group. No financial terms were disclosed. Baywater is a provider of oxygen-therapy, sleep apnea therapy and non-invasive ventilation therapy services to patients in the home.


Duke Street, the midmarket private equity group, has sold its controlling investment in Baywater Healthcare UK to Bastide Group, a specialist in the sale and rental of home medical equipment in France. The undisclosed consideration makes a total cash return of more than 5x cost for Duke Street and its co-investor, Souter Investments with the potential for further returns from an earnout based on future performance. The firm sold Baywater’s Irish operations to Air Liquide in August 2015.

Baywater delivers oxygen-therapy, sleep apnoea therapy and non-invasive ventilation therapy services to patients in the home. It is the only independent company serving the UK market, alongside three major gas group subsidiaries. The business was acquired by Duke Street in November 2013 as part of Air Products’ Homecare operations in the UK and Ireland. The transaction was Duke Street’s second deal-by-deal financing.

The business currently employs 230 people and provides support to 26,000 patients. The sale to Bastide Group has been approved by the National Health Service.

Commenting on the sale, Charlie Troup, Managing Partner at Duke Street, said:
“Baywater has been a classic Duke Street investment in healthcare, a core sector for the firm. With the dual trends of an ageing population and an increasing need for the NHS to manage costs by providing patients with care at home, we have worked successfully with management to raise the quality of care, improve logistics, invest in stronger operational and logistics capabilities, thereby delivering significant growth in profitability. We wish Bastide Group every success with Baywater’s next phase of growth.”

Adam Sullivan CEO of Baywater commented: “The four years we have spent with Duke Street and Souter have been exciting and rewarding – they have been demanding while constructive and supportive. I and my team are proud of the business we have built together – the strength of which has been recognised by Bastide.”

About Duke Street
Duke Street is a leading operationally focused European mid-market buyout group. Founded in 1988, it invests across four sectors: healthcare, services, consumer and industrials. Duke Street has a proven model of value creation by successfully transforming businesses through implementing operational change and buy-and-build, having made approximately 60 bolt-on acquisitions for its portfolio companies. The firm is supported by its strategic partner and shareholder, Tikehau Capital, an asset management and investment group investing across private debt, real-estate, private equity and liquid strategies, with €12.6bn of assets under management and €2.3bn of shareholders’ equity.