Civitas Investment Management (CIM), an impact investor specialising in government-backed community real estate assets, has acquired care provider Heathcotes for an undisclosed price. The transaction was undertaken in partnership with Envivo Group, a care provider in the UK residential care and supported living sectors.

As part of the transaction, CIM has acquired all the healthcare real estate assets of Heathcotes on behalf of underlying investment clients and Envivo Group has purchased the operational care business.

Founded in 2005, Heathcotes has 72 UK healthcare facilities providing specialist residential accommodation for adults and children with learning disabilities, mental health and associated complex needs. It works with more than 50 local authorities and clinical commissioning groups.

CIM group director Tom Pridmore said: “We are delighted to have partnered with Envivo Group to announce this significant transaction, one of the largest in UK healthcare this year. The healthcare sector in which we invest is continuing to demonstrate strongly its resilience, with a service offer that is uncorrelated to the broader economy, that delivers positive social outcomes, reliable economic returns and clear value for money for the public purse. We believe that the combination of skills that we have brought together will enable Heathcotes to continue to grow successfully to meet the demand for its services whilst continuing to place the needs of the service users and staff at the heart of its activities.”

Paul Marriner, chairman of Envivo Group added: “We are delighted to have partnered with Civitas and acquired the Heathcotes Group. Heathcotes is a well-respected, high-quality care provider, and we are looking forward to working with their management team to invest in systems and infrastructure to further enhance their quality, that enables them to achieve excellent outcomes for people that the Group supports, as part of the wider Envivo family.”

Brendan Kelly, managing director of Heathcotes (pictured), said: “I really welcome this new chapter in the development of Heathcotes. Envivo’s core values and focus on the best outcomes for the individuals we support, their families and our colleagues, is closely aligned with Heathcotes values. As we transition to new ownership, we are all looking forward to working together with the wider Envivo family over the coming months and years ahead.”

Civitas was advised on commercial due diligence by Connell Consulting.

Date published: November 18, 2020

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