Nurse Plus agrees investment with Key Capital Partners

Private Equity investor Key Capital Partners (KCP) has supported a £15m management buyout of nursing and care staffing specialist, Nurse Plus (now branded as Nurseplus). BCMS advised the shareholders of Nurseplus on the transaction.

Founded in 2005 and headquartered in Canterbury, Kent, Nurseplus is a high-profile, leading provider of nursing and care services to both the healthcare and social care sectors, and today operates a network of more than 50 branches throughout the UK.

Following the transaction, Key Capital Partners invested in expanding the business

This deal had many hallmarks of a successful PE transaction. The major shareholders were looking to retire, while the management team were keen for an opportunity to grow the business moving forward. Nurseplus boasted a strong track record of growth – around 28% per annum – and the company selected BCMS as lead advisor following a previously unsuccessful attempt to sell the business by a healthcare sector specialist.

Deal insights and developments

At the time of the transaction in 2012, BCMS attracted considerable interest from trade and private equity buyers. The enterprise value achieved for the business was £15m plus surplus cash, a large proportion of which represented cash on completion, while additional value was generated via loan notes and 50% retained equity in the new company.

Following the deal, Key Capital Partners (KCP) invested in expanding the business, opening 10 further branches. This increased the employee base from 50 to 175 people, and turnover to £40m. Ultimately, in less than three years, KCP generated an exceptional five-times return on their original investment, selling the business to Sovereign Capital for in excess of £50m. The original shareholders and management team shared in this significant uplift.