Duke Capital Limited (LON:DUKE), a leading provider of hybrid capital solutions for SME business owners in Europe and North America, has announced a follow-on investment of £2.0m into its existing capital partner, Tristone Healthcare Limited. This investment will enable Tristone to complete a further acquisition, in line with its acquisitive growth strategy.
Tristone provides specialist residential, nursing and domiciliary care and support in two end markets: i) high acuity adults with severe mental, physical or learning disabilities; and ii) children and young people who require care, support and specialist education.
Highlights:
· Duke’s funds will facilitate Tristone’s acquisition of Serenity Care Homes Limited, a specialist in therapeutic care for service users between the ages of 7 and 18.
· The financing increases Duke’s total credit financing in Tristone to £21.2 million. The investment terms are the same as Duke’s initial investment into Tristone, including a starting yield of 13.5% and a +/- 6% annual revenue adjustment factor in respect of hybrid credit payments due.
· As part of the deal, Duke will also invest £500k of additional equity in Tristone, increasing their ownership stake from 21.3% to 28.4%.
· Duke has now supported five Tristone acquisitions. Following the acquisition of Serenity, the enlarged Tristone Group will have extended its reach and impact in the social care sector, employing over 800 staff members.
Neil Johnson, CEO of Duke Capital, said:
“The acquisition of Serenity Care Homes will enable Tristone to cater for a growing number of young adults with complex needs, expanding its presence in the South of England. Serenity’s established relationships with Local Authorities, who make up the majority of referrals, will deepen Tristone’s regional partnerships and reinforce its reputation for delivering high-quality care. Duke is also excited to invest additional equity into Tristone, increasing our stake in the business and supporting the ongoing growth of the platform.”
