Alantra advised on the acquisition of Cornerstone Healthcare Group, a specialist care home operator

Dec 2018

Buy-side advisory

Alantra has advised on the acquisition of Cornerstone Healthcare Group Ltd (“Cornerstone” or “the Group”), which is backed by experienced healthcare investor Ignite Growth LLP and Kvika Securities Ltd [and is supported by debt funding from Metro Bank]. As part of the deal, the Group has acquired two specialist nursing homes in Hampshire (South Africa Lodge and Kitnocks House), which provide 154 beds for older people with complex neurological, physical and mental health needs.

The acquisition is the first in an ambitious five-year growth plan for the Group, which has significant capital for future acquisitions in the specialist care market. It also demonstrates the continued strong appetite for high quality specialist care assets in the UK.

Justin Crowther, a Partner at Alantra, said: “Cornerstone is a high-quality business which provides great care and consistently achieves high occupancy rates and positive feedback from commissioners and relatives. We are delighted to have advised on this acquisition, which allows a highly-experienced management team, supported by Ignite, to build a high quality national provider via further acquisitions in this underserved market.”

He added: “We developed a strong relationship with the incoming management team, working closely with them throughout the entire process – from selecting an equity funder to negotiating key commercial points with the vendors. Our knowledge and experience of advising clients in the healthcare services space allowed us to articulate the unique opportunity to potential investors and find the right partner to drive future growth.”

With an outstanding reputation among commissioners for the quality of its care and expertise, Cornerstone is a family run business that provides specialist care to patients with neurodegenerative illnesses, mental health issues, high physical needs and challenging behaviour.

The Board of Cornerstone Healthcare Group has extensive experience in the market. The Group is chaired by Stephen Collier, Chair of NHS Professionals and former Group Chief Executive of BMI Healthcare. Chief Executive, Johann van Zyl, Chief Operating Officer, Dara Ní Ghadhra and Interim Finance Director, Geoff Hiskett were part of the management team behind the success of national specialist neurological care provider, PJ Care.