Shaw healthcare, one of the UK’s leading providers of residential and nursing care for the elderly, has agreed to sell a minority stake to Bridges Evergreen Holdings (“Evergreen”) for £10m to accelerate its growth and development.
Advised by Blake Morgan, Shaw is one of the ten biggest employee-owned businesses in the UK with over 3,500 employees and revenues in excess of £90m last year. Driven by the ethos to deliver “the quality of care we would want for our loved ones” and brand values of Wellness, Happiness and Kindness, Shaw operates 51 homes across England, Wales and Scotland and enjoys strong relationships with Local Authorities and the NHS, from whom it derives over half of its income through long-term contracts.
Evergreen is a permanent capital vehicle managed by Bridges Fund Management (“Bridges”), the specialist sustainable and impact investor. Unlike standard private equity funds, Evergreen has no requirement to exit in a finite period – allowing it to provide financial and operational support to Shaw over the long-term. As part of the deal, Bridges’ Scott Greenhalgh will join the Shaw board as a Non-Executive Director.
Bridges has extensive experience in the care sector. Evergreen’s first investment was in a residential care provider for young people with complex needs. Bridges has also previously backed two domiciliary care providers (one employee-owned), both of which substantially increased their revenues and care provision during Bridges’ investment period. And through its property funds, Bridges has also developed 14 of the most environmentally-friendly care homes in the UK, in partnership with a leading developer.
Jeremy Nixey, founder/CEO of Shaw healthcare, commented: “As we continue to expand the business and enhance our impact in the coming years we sought an investment partner that shares our values and has a strong record in the care sector. Bridges are the perfect fit and align with our ethos.
“With the investment scheduled for completion in early December, we are very grateful to Blake Morgan for their first class support. Without doubt, their expertise and pragmatic approach enabled us to agree a deal with Bridges that works financially and morally for our business.”
Robert Cherry of Blake Morgan led the team advising Shaw. He said: “Shaw is helping to address the urgent requirement for high quality care provision across the UK. The investment by Bridges will support the organisation’s continuing growth and social impact focus as demand for high-quality, affordable residential and nursing care continues to grow. We wish them every success.”
Blake Morgan has an international portfolio of multi-national client companies (public and private), SMEs, owner managed businesses and start-ups with a need for high-quality corporate and M&A support and advice.
The corporate team is acknowledged within the legal industry and in the independent legal directories, for providing a first-class level of service across a wide range of transactions including mergers, acquisitions, sales, private equity and joint ventures. The 2017 edition of the prestigious Legal 500 Directory The Legal 500 lists 16 Cardiff-based Blake Morgan Partners as “leading individuals” – the highest accolade the directory can give. Those named include corporate lawyer Robert Cherry who acted for Shaw healthcare.