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BGF exits investment in CHS Healthcare

BGF News 03.01.2021

BGF has announced the successful exit of its investment in CHS Healthcare, a provider of outsourced services for the NHS and social care, following its acquisition by Acacium Group (formerly known as Independent Clinical Services), a specialised healthcare solutions partner with its head office in London.

BGF invested £10 million of growth capital into CHS in 2018, which helped the business expand its infrastructure and operations, supporting the provision of services to the NHS and local authorities nationwide. The investment also enabled CHS to bolster its senior management team and pursue an acquisitive growth strategy.

Headquartered in Sutton Coldfield, CHS was established by GP-turned-healthcare entrepreneur, Dr Richard Newland in 1995.  While working as a GP, he recognised that families needed more support and expert advice when choosing a care home. The company was developed to provide free, expert advice to families and the value of this work was quickly recognised, building partnerships with hospitals and care homes initially in the Midlands and then across the country.

Today, CHS’ offering is focused on improving patient flow, healthcare assessment support and data management. It employs more than 250 people nationwide, contracting with more than 150 NHS hospitals and clinical commissioning groups across the UK.

During BGF’s three-year investment period, CHS’ revenues grew by 75% to over £20 million, helping to ensure a strong return in a relatively short period.

The deal marks BGF’s fourth successful exit this year, following the exits of investee companies Renal Services, Arcinova and Olive Communications. Each exit generated a high return on capital.

At the same time, more than £50m has been invested by BGF across new and follow-on investments since January. New investments include Woodall Group, CSN Healthcare, Genflow, Snipple, Oxbotica and Cambridge GaN Devices.

Gurinder Sunner, head of BGF’s Midlands team, said: “This is an exciting outcome for CHS Healthcare and BGF. We backed the business in 2018 and over the last two years the company has surpassed expectations. The exit has delivered a strong return for BGF and the other shareholders and set CHS up for further expansion. We wish the team all the best on the next stage of the company’s growth journey.”

Dr Richard Newland, Chairman of CHS Healthcare, added: “BGF has been a fantastic partner at an important stage of the business’ growth. In a short space of time, we’ve expanded our services, brought in senior talent and pursued business critical acquisitions. We’ve thoroughly enjoyed working with Gurinder and the team at BGF and are confident the business will continue to flourish in partnership with Acacium Group.”