Care Deluxe!
Graphite Capital backed two operators to set up Avery Healthcare with the objective of building a group of the highest quality care homes in England.
Avery Healthcare launched in October 2005 and grew rapidly, making seven acquisitions in addition to developing new sites. With Graphite’s support the company was able to raise significant debt to fund its expansion.
Avery's strategy was to own the highest quality care homes which would become the home of choice in their given catchment area. The market was attractive due to increasing demand from an ageing population and a shortage of good quality homes.
Under Graphite's ownership, Avery Healthcare:
- completed seven acquisitions in less than two years
- grew from start-up to 21 care homes comprising over 1100 bed
- sold 16 mature homes to a trade consolidator 20 months after launch
- transferred five immature homes to Optimum Care, a successor company funded by Graphite to continue the growth strategy
In 2007 Avery’s mature homes were sold for £96.5 million to Southern Cross Plc, a listed care homes company, generating an IRR of 92 per cent.
