Care right on your doorstep
In September 1998 Graphite led the management buy-in / buy-out of Clinovia from its US parent. The business was loss-making and in need of a turnaround but had significant potential given its market position.
The business was the leading provider of home healthcare services in the UK, principally to the NHS. It needed restructuring and revival but had retained excellent customer relationships. It was one of the few providers of a much needed service.
The balance sheet included a large amount of cash which was subsequently used to finance the restructuring programme and pay down acquisition debt. The opportunity was to make the business more effective in differentiating itself from competitors, allowing it to establish a premium pricing strategy for its products.
Under Graphite's ownership, Clinovia:
- was restructured to improve profit margins, product delivery and general management
- developed a differentiated service and premium pricing
- increased product penetration and market share
- trebled operating profit
Clinovia was sold to LVL Medical, a pan-European home healthcare group based in France, in July 2000, generating a multiple of 7.9 times cost and an IRR of 242 per cent.
