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Serco Buys Grosvenor Health

By
PE Hub Staff
-

Bestport Ventures and Close Brothers have sold their stakes in UK-based occupational health services provider Grosvenor Health Ltd. to the Serco Group for Gbp19.6 million. The two firms acquired Grosvenor via a March 2004 management buyout, and later provided additional capital to help the company acquire Associated Health Specialists and Health Sure UK.

 

PRESS RELEASE

 

Bestport Ventures LLP (“Bestport”), the healthcare services specialist, is pleased to announce that it has exited its investment in Grosvenor Health Limited (“Grosvenor”) through a sale of the company to the Serco Group for a total consideration of Gbp19.6 million, comprising of Gbp17.8 million purchase price and Gbp1.8 million surplus cash.

 

Grosvenor, which includes Associated Health Specialists (“AHS”) and Health Sure UK, is one of the UK's leading independent providers of occupational health services. Through a rapidly growing client base the company supports the health and needs of more that 450,000 client employees nationwide.

 

Grosvenor was an MBO from Capio UK in March 2004 initially backed by funds from Close Ventures with two subsequent rounds from Close and Bestport to fund the acquisitions of AHS and Health Sure. Ole Bettum, Managing Partner of Bestport Ventures, led the MBO whilst at Close Ventures and continued to represent all the institutional shareholders through to the highly successful exit.

 

Commenting on the disposal, Ole Bettum, Managing Partner of Bestport Ventures said: “At the time of the MBO Grosvenor had a turnover around Gbp7 million and was marginally profitable. Four years on the company has been transformed into one of the leading providers in its field with turnover approaching Gbp16 million producing an operating margin well in excess of 10%.  Due to the 'one-stop-shop' nature of the Close funds involved the MBO was done without external gearing and the total institutional IRR was 37% with a money multiple of 2.7. The equity tranche of the funding package generated an IRR of 60% and a money multiple of 5.8.”