Client: The Blackstone Group
Our healthcare team is advising The Blackstone Group on its acquisition programme within the UK healthcare sector.
In 2004, our client, The Blackstone Group, recognised the potential within the UK’s independent long-term care market and sought to build a large, professionally-managed healthcare services company across key market segments of elderly and specialist care, with a focus on high-quality care delivery.
Blackstone instructed Gerald Eve to advise on a series of acquisitions and sale and leasebacks of acquired assets.
Solution
In Blackstone’s plan to enter the elderly care market, Southern Cross and its management was identified as a platform acquisition from which to grow scale, both through organic development and acquisitions.
We initially provided property due diligence and valuation advice to enable our client to purchase Southern Cross from West Private Equity for £162m.
At that time, Southern Cross was the fourth largest provider in the UK long-term care market. The property portfolio comprised 160 care homes with approximately 8,200 beds. The business also provided specialist healthcare services to patients suffering from acute psychiatric problems, brain injuries and learning disabilities.
Result
Following its successful acquisition of Southern Cross, we have continued to advise Blackstone on further acquisitions, including the £1.1bn purchase of NHP, and the estimated £85m purchase of Ashbourne from Electra Partners in November 2005. We also advise on the disposal of property assets supporting the company’s leasehold property model.
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