LDC completes NRS Healthcare exit

LDC has partially exited its investment in NRS Healthcare after the business secured investment from H2 Equity Partners.

The transaction comes just under two years after LDC backed the £24million management buyout of the business from multi-channel retailer Findel PLC.

NRS Healthcare is a market leading outsourced provider of specialist community healthcare equipment and services to the NHS and local authorities.

The firm’s products and services help people with mobility issues to be self-sufficient within the home to either delay or prevent more expensive residential or acute care.

Since its original investment, LDC has supported the transformation of the business' model to become a full service provider of domiciliary care and home adjustment equipment and services, alongside significant organic growth and infrastructure investment.

During LDC’s investment, revenues at NRS Healthcare have increased 46 per cent from £90million in 2013 to a forecast £132million in the current financial year. The Leicestershire-based business has also increased its staff by a third from 553 to 734 employees. On realisation, LDC has achieved a 2.8x return on money invested.

As part of the transaction, LDC will retain a minority investment in the business. The deal was led by John Garner, Director and Head of LDC in Yorkshire and the North East, and Investment Director Dale Alderson. Garner said: “In just two years we have seen a dramatic increase in the outsourcing of care services, but also rapid development of the lead provider model which is helping to deliver joined-up first-rate support to customers. With a broader investor base, alongside H2 Equity Partners, we look forward to continue our backing for NRS and help the management team drive forward the evolution and scaling of the business.”

Phil Isherwood, CEO at NRS Healthcare, said: “Following the original buyout, our business needed a real step change to make sure that we remained at the forefront of the market. The investment from LDC has proved essential and the team have been on hand to offer guidance through the transformation. Now with increased support from a broader investment base, we are focused on developing our proposition and the range of services we can offer our customers.”

LDC was advised by Matthew Jowett from Rothschild in Leeds, while legal support was provided by Peter Wood and Catherine Hemsworth of Pinsent Masons. Yorkshire Bank provided debt facilities to support the transaction.

Notes to Editors

  1. LDC is the private equity arm of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.  
  2. LDC backs ambitious management teams from UK-based medium sized companies seeking up to £100m of investment to fund management buyouts or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure, Support Services, Construction & Property and Financial Services.
  4. LDC has a UK regional network with locations in Aberdeen, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Newcastle, London, Manchester, Nottingham and Reading.