Alantra advised Raphael Health Care on its sale to Elysium Healthcare

Feb 2017

Sell-side advisory

Alantra’s healthcare team have advised the Shareholders of Raphael Healthcare, a provider of specialist mental health services on its sale to Elysium Healthcare. The deal was the first acquisition by BC Partners backed Elysium Healthcare, which was established following the merger between Partnerships in Care and Priory Group. Elysium specialises in acute mental illness, personality disorders, eating disorders, secure and rehabilitation care across the 22 sites that were acquired from the merged group. 

Raphael was established in 2004. The company provides award winning low secure mental health services for women at its Farndon Unit in Nottinghamshire and has a site with planning permission for a tier 4 CAMHS unit at Briars Hay in Lancashire. Alantra, which had known the company for many years, were initially appointed in September 2016 to undertake a strategic options review for the Company as the business had received a number of unsolicited approaches. We worked closely with the company’s lawyers Browne Jacobson to stress test the business and ensure it was prepared for an intensive diligence process.   

The deal was completed in a swift timescale, with six weeks between the signing of Heads of Agreement and completion.  

Claire Thomson, CEO of Raphael Healthcare commented: “We are extremely proud of the award-winning service that we provide to our patients and stakeholders. The business has found a good new owner in Elysium who have the same values as us placing a strong emphasis on quality and the same client focused values. This is a tremendous opportunity and natural progression for Raphael and one that should benefit service users, commissioners and our staff. The significant efforts and quality of advice provided by Catalyst and Browne Jacobson ensured that we concluded this deal swiftly and to the satisfaction of all parties”. 

Alantra’s healthcare team, led by partner Justin Crowther, advised on the deal and their knowledge and expertise in the care sector was an important factor in the process. Justin commented: 

“We are delighted to have worked closely with the shareholders of Raphael to achieve a successful outcome. Raphael is a market leading brand and the transaction will enable Elysium to develop further their specialist services and allow them to expand their geographical presence.”