Ashbourne acquires Ridgmont as Graphite sells shareholding

Posted on April 1st, by editor in Caring Times. No Comments

Mid-market private equity specialist Graphite Capital has sold its majority shareholding in Ridgmont Care Homes to Ashbourne Healthcare in a transaction which valued the care home group at £88 million. Ridgmont, with 29 care homes around the UK, has increasingly focused on specialist and dementia care services and on the private pay customer group. Ashbourne, which is owned by Cannon Capital and backed by Bank of Scotland Corporate, operates more than 160 care homes. Graphite acquired a 78 per cent holding in Ridgmont in 2001 when it backed the £17 million secondary buy-out led by Roger Storey. It subsequently provided additional financing to fund the rapid expansion of the business organically and through acquisitions. Operating profits, before central costs, are reported to have increased from £3 million at the time of the buy-out to £8 million in the year to March 2005. The sale provides Graphite with a total return of 6.4 times its original investment and an internal rate of return of 76 per cent. Rid

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