UK social impact investor Civitas Investment Management has announced the acquisition of Heathcotes, one of the UK’s largest care providers, for an undisclosed price.
The transaction has been undertaken in partnership with Envivo Group, a leading care provider delivering quality services within both residential care and supported living sectors in the UK. As part of the transaction, CIM has acquired all the healthcare real estate assets of Heathcotes on behalf of underlying investment clients and Envivo Group has purchased the operational care business.
Founded in 2005, Heathcotes has 72 healthcare facilities which are located across the UK, providing specialist residential accommodation for adults and children with learning disabilities, mental health and associated complex needs. Heathcotes has an established track record of working with over 50 local authorities and Clinical Commissioning Groups.
Tom Pridmore, group director, Civitas Investment Management Limited commented: ‘We are delighted to have partnered with Envivo Group to announce this significant transaction, one of the largest in UK healthcare this year. The healthcare sector in which we invest is continuing to demonstrate strongly its resilience, with a service offer that is uncorrelated to the broader economy, that delivers positive social outcomes, reliable economic returns and clear value for money for the public purse. We believe that the combination of skills that we have brought together will enable Heathcotes to continue to grow successfully to meet the demand for its services whilst continuing to place the needs of the service users and staff at the heart of its activities.’
Civitas, which manages £2.2 bn of assets across three funds in the UK, is solely active in the UK but recently announced it is preparing the launch of a €500 mln care-based housing fund in its first move into Europe.
The company is looking to raise between €260 mln and €500 mln of equity for a new unlisted investment vehicle which will focus on the acquisition of existing assets as well as redevelopment opportunities in the Nordic countries as well as in Germany. The vehicle may also gain a minor exposure to the Spanish market.
