Avery Healthcare
Building on the success of its previous investments in the elderly care home sector, Graphite backed an experienced team to launch Avery Healthcare in 2005. With our support, the management team subsequently established two further companies, Optimum Care and Willowbrook Healthcare, with all three businesses growing extensively and exiting between 2007 and 2013. The aim was to build and acquire a high-quality portfolio of elderly care homes targeted mainly at the private pay market.
In a competitive market, Avery differentiated itself through the standard of its care homes and the quality of the care provision, always aiming to become the home of choice in an attractive catchment area. The market was growing consistently, driven by increasing demand from an ageing population and a shortage of high-quality, purpose-built homes. Avery and its successor companies grew rapidly, making seven acquisitions in addition to developing new sites.
KEY BUSINESS ACHIEVEMENTS
Successfully raised almost £150m of bank debt alongside £72m of development capital from Graphite
Completed seven acquisitions alongside a very active build programme
Operated 45 homes in total, comprising almost 3,000 beds
Successfully positioned themselves as premium operators, making them attractive to trade consolidators
>£325m
Combined EV upon exit of the three businesses
BUSINESS EXIT
The three companies were sold to separate acquirers, two trade players and a REIT, with Graphite generating a combined return of 2.1 times its investment and an IRR of 36.5 per cent.