Acquisition

RNS Number : 2213I

HG Capital Trust PLC

10 June 2011

 



HgCapital Trust plc will participate in the acquisition of a majority stake in Mainio Vire alongside other institutional clients of HgCapital. The Trust, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all HgCapital's investments. It will contribute approximately £12.5 million to the investment.  Based on the 31 May 2011 NAV and the impact of this transaction, liquid resources are estimated to be £89.6 million (25% of the 31 May 2011 NAV) and the Trust's undrawn commitment to Hg6, Hg5, RPP and RPP2 is £193 million.

Set out below is the text of a press release issued today by HgCapital announcing the acquisition.

HgCapital acquires Finland's leading social care operator, Mainio Vire

London, 10 June 2011: HgCapital, the European sector-focused private equity investor, has today announced the acquisition of Mainio Vire, Finland's leading social care company, from MB Funds, a Finnish private equity fund.

The acquisition represents a continuation of HgCapital's thematic, sector-driven investment strategy, with Mainio Vire being HgCapital's 6^th investment in the health and social care services market. HgCapital's other current investments in the sector are Voyage in the UK, Frösunda in Sweden and Casa Reha in Germany. The Nordic healthcare market has multiple attractions which underpin this transaction: favourable macro demographics, a solid public funding environment, a highly fragmented market and a strong trend towards private provision of care. HgCapital's experience with Frösunda has been very positive and highlights the value creation opportunity present in the Nordic health care market.

Founded in 1997, Mainio Vire was one of the first private social care companies in Finland and it has grown rapidly via a combination of opening new care homes and selected small acquisitions to become the market leader in Finland. Today, Mainio Vire is the largest social care company in Finland with forecast sales of €62 million in 2011 (up 21% year on year) and, from 2008 to 2010, it grew sales at 14% CAGR.

Mainio Vire provides services in four business areas:  elderly care, mental health, child day-care and home services. The company operates 54 care homes with 1,675 beds and seven child day-care centres with 360 places. Mainio Vire has one of the widest geographic footprints in the sector and is strongest in the regional economic centres located in the southern and central parts of Finland. Approximately 1,150 people work at the Company and over 800 of these people have formal social or healthcare education.

Commenting on the investment, Carl Harring and Justin Leong, Directors at HgCapital, said: "Mainio Vire is a very attractive business in a fragmented, high growth market. The company, with its strong management team, class leading systems and quality control processes, offers us an excellent platform for growth. We have identified multiple opportunities to create value through organic growth in its current and adjacent sub-sectors and through potential bolt-on acquisitions."

Kristiina Hautakangas, CEO of Mainio Vire, said: "We are delighted about our new owners and their in-depth knowledge of the social care sector. The Finnish market is going through a transition period that offers many exciting opportunities to Mainio Vire and we look forward to going through our next phase of growth together with HgCapital."

The acquisition is anticipated to complete within four weeks. HgCapital was advised in this transaction by SEB Enskilda in Finland.

- Ends -

For further details please contact:

HgCapital:	Carl Harring	[phone]
Maitland:	Neil Bennett	[phone]
	George Hudson

About HgCapital

HgCapital is a private equity investor focused on the European middle market. Its business model combines sector-specific thematic investing with dedicated portfolio management support. HgCapital seeks to invest in growth companies in expanding sectors which create jobs across Western Europe.

HgCapital is also an investor in renewable energy, establishing itself as a market leader by building a dedicated energy investment team in 2004. It continues to invest a dedicated fund in a range of renewable power technologies across Western Europe.

HgCapital manages over £3.3 billion for some of the world's leading institutional and private investors.  For further details, please see www.hgcapital.com.

About HgCapital Trust plc

HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange.  The Trust is a client of HgCapital, giving investors exposure to a portfolio of high-growth private companies, through a liquid vehicle.  New investments and existing portfolio companies are managed by HgCapital, an experienced and well resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors.  The Trust has won the Investment Week Private Equity Investment Trust of the Year in 2005, 2006, 2007, 2008, 2009 and 2010.  For further details, please see www.hgcapitaltrust.com

About Mainio Vire

The company was established in 1997 and was one of the first private social care companies in Finland. In 2004 it was acquired by Medivire Hoiva, a healthcare company owned by MB Funds (Finnish private equity fund). In 2007, the occupational health part of Medivire was sold to Terveystalo (now owned by Bridgepoint), and MB Funds retained the social care part of the company - Mainio Vire.  The Company has grown via a combination of rollout (new care home developments) and rollup (bolt-on acquisitions). Mainio Vire is the largest social care company in Finland with forecast €62 million sales in 2011 (up 21% year on year) and 3.6% share of the private market. 

Mainio Vire provides services in four business areas:  elderly care, mental health, child day-care and home services. The company operates 54 care homes with 1,675 beds and 7 child day-care centres with 360 places. Mainio Vire has one of the widest geographic footprints in the sector and is strongest in the regional economic centers located in the southern and central parts of Finland. Approximately 1,150 people work at the Company, and over 800 of these people have formal social or healthcare education.

http://www.mainiovire.fi/

Neither the contents of HgCapital's or Mainio Vire's website nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.

 

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