BGF exits investment in CHS Healthcare

CHS Healthcare

BGF has exited 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 London-based healthcare solutions partner.

BGF invested £10 million of growth capital into CHS in 2018, which helped the business expand its infrastructure and operations, bolster its senior management team and pursue an acquisitive growth strategy.

Headquartered in Sutton Coldfield, CHS was established by its chairman Dr Richard Newland in 1995 and focuses 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 more than £20 million.

The deal is BGF’s fourth 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 £50 million 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.”

Newland added: “BGF has been a fantastic partner at an important stage of the business’s 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.”

The exit was led for BGF by Sunner and Chris Nixon. Advisors to BGF and CHS for the transaction were KPMG Corporate Finance and Gowling WLG.

Date published: March 1, 2021

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