Case Studies

In July 2001, LGV funds in a conventionally structured buy-out, acquired the Craegmoor Healthcare Group, the leading provider of residential care in the specialist sector. Craegmoor operates some 200 homes with an aggregate of 4,800 beds across the UK. Its homes care for a range of needs including those with learning disabilities and challenging behaviour, the young physically disabled, as well as the elderly mentally infirm.

The acquisition of Craegmoor follows LGV’s successful exit from Santé Finance, the French hospital group, in March 2001 and reflects our keen interest in the healthcare sector.

Craegmoor was formed in 1994 and has expanded rapidly through the acquisition of a mixture of single care homes and corporate operators.

Specialist care will continue to be the main growth area for Craegmoor. Increased health spending and regulatory reform, together with an improved outlook for fees and occupancy among the larger operators suggest positive prospects for the future.

In particular, the market for residential specialist care is highly fragmented and this provides Craegmoor, as the leading participant, with the opportunity to grow its current business through the acquisition of existing homes and development of new homes. LGV is delighted to be able to provide support for this continued growth, consistent with its commitment to buy and build investments.